In a bold move to reshape Indonesia's financial landscape, President Prabowo Subianto is pushing for a revolutionary transformation of the country's stock exchange, demanding it meet global standards. But here's where it gets controversial: can Indonesia truly compete on the international stage, and what will it take to earn the trust of global investors? Danantara CEO Rosan Roeslani recently shed light on the President's vision, emphasizing the need for unparalleled transparency and credibility in the capital market. This comes at a critical time, as Indonesia grapples with concerns raised by Morgan Stanley Capital International (MSCI) over the transparency of its share ownership structure, which has temporarily halted rebalancing of Indonesian stocks.
During a meeting with Commission VI of the House of Representatives (DPR) on February 4, 2026, Rosan revealed that President Prabowo is personally invested in the stock exchange's progress. The President has been actively inquiring about the latest developments and the government's strategies to fortify the national capital market. And this is the part most people miss: the discussions aren't just about addressing MSCI's concerns but also about implementing long-term strategies to elevate the stock exchange's overall integrity and attractiveness to investors.
The talks, which included key economic figures like Coordinating Minister Airlangga Hartarto and Finance Minister Purbaya Yudhi Sadewa, delved into MSCI's assessment and broader initiatives to enhance market transparency. Rosan stressed that transparency is the cornerstone of investor confidence, stating, 'Confidence in investing in the capital market is largely determined by how standards and transparency are implemented.'
In response to MSCI's critique, the Financial Services Authority (OJK) has proposed a three-pronged solution. First, they aim to increase the transparency of share ownership data, even for shareholders below the 5% reporting threshold. Second, the OJK plans to expand investor classification from nine main types to 27 subtypes, enhancing the clarity of beneficial ownership disclosures. Third, there's a proposal to raise the free float threshold from 7.5% to 15%, a move that will be gradually implemented with input from all market players.
Here’s the controversial part: while these measures aim to address MSCI's concerns, some critics argue that increasing transparency could expose vulnerabilities in the market, potentially deterring certain investors. What do you think? Is this level of transparency a necessary step for Indonesia's financial growth, or could it backfire? Share your thoughts in the comments below.
The OJK has committed to publicly reporting progress on these initiatives, aiming to regain MSCI's confidence. After the policy-level meeting, technical discussions between the OJK and MSCI will continue, with MSCI expected to provide detailed insights into their assessment methodology. As Indonesia navigates this complex journey, one thing is clear: the stakes are high, and the world is watching. Will President Prabowo's vision propel Indonesia into the global financial spotlight, or will it face unforeseen challenges along the way? Only time will tell.
