Jakarta. FTSE Russell has reaffirmed Indonesia’s status as a secondary emerging market and kept the country off its watchlist, offering a positive signal for the domestic stock market as authorities push ahead with reforms to improve transparency and investor confidence.

Indonesia Stock Exchange (IDX) President Director Jeffrey Hendrik said the global index provider welcomed the market reforms during an online meeting with the exchange on Friday. IDX outlined progress in three key areas: transparency, liquidity and trade surveillance.

“FTSE expressed its appreciation for the steps taken to improve Indonesia’s capital market,” Jeffrey told a press conference at the IDX building in Jakarta on Monday.

Jeffrey said FTSE Russell also reaffirmed the findings of its Oct. 6, 2026, report, which maintained Indonesia’s secondary emerging market classification and confirmed that the country was not on its watchlist.

The position contrasts with that of MSCI, which on Oct. 16 announced a consultation on a proposal to reclassify Indonesia from an emerging market to a standalone market, raising concerns about the country’s stock market transparency and accessibility.

FTSE Russell’s assessment provides a positive signal as Indonesian authorities work to strengthen market integrity. However, the exchange and the Financial Services Authority (OJK) still face the task of ensuring that planned reforms translate into better disclosure and more reliable trading practices.

FTSE Russell has said it will continue monitoring the implementation of capital market integrity reforms in Indonesia. Its areas of focus include greater disclosure of share ownership, more detailed investor classifications, minimum free-float requirements and stronger market surveillance.

These measures aim to improve transparency and the reliability of market data, key considerations for global index providers when assessing a market’s classification.

The OJK has also confirmed that FTSE Russell retained Indonesia’s secondary emerging market status without placing it on the watchlist, describing the decision as a positive signal for the country’s reform efforts.

OJK Executive Chief of Capital Market, Derivatives Finance and Carbon Exchange Supervision Hasan Fawzi said the reforms were not a short-term response to assessments by global index providers but part of a structural agenda pursued consistently since early 2026.

He said improvements in transparency, initial public offering (IPO) quality, trade surveillance and law enforcement were central to rebuilding investor confidence in Indonesia’s capital market.

As part of the reform agenda, the OJK has urged the IDX to refine its methodology for identifying stocks with high shareholding concentration (HSC). The improvements are expected to strengthen transparency and introduce greater independent involvement in the HSC governance mechanism.

The IDX plans to expand its HSC committee to nine members, comprising four representatives from the boards of market-organizing institutions and five external members drawn from industry, academia and investor representatives.

The exchange will also strengthen trade surveillance to improve its ability to detect unusual transactions and potential stock price manipulation.

These measures form part of broader efforts to bolster the credibility of Indonesia’s capital market among domestic and international investors, as authorities seek to address concerns over transparency and market integrity.

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