OJK chairman Mahendra Siregar said in a press conference on Thursday that the authorities would undertake “reforms” by fixing “transparency and integrity” in a “swift, accurate and effective” manner.

“We, the OJK, accept [MSCI’s] evaluation as good input, because we see that it still wants to include the stocks of listed Indonesian companies in its global indexes, which shows that the Indonesian capital market has big potential and is investable for international investors,” said Mahendra.

“We will ensure that any further adjustments, if needed, are carried out until everything is final, until it is accepted, in line with what MSCI requires,” he added.

MSCI announced on Tuesday a temporary freeze on several Indonesian stock indexes with immediate effect due to what it deems inadequate transparency around listed Indonesian companies, meaning changes to the underlying stocks will not be reflected in its global benchmarks.

The announcement prompted a massive sell-off that triggered two automatic 30-minute trading halts, one on Wednesday afternoon and the other soon after the market opened on Thursday morning.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

View More Newsletter

By registering, you agree with The Jakarta Post's Privacy Policy

Sign Up

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

Read also: IDX Composite index nosedives at open

Popular

Davos narrative and domestic realities: Indonesia’s split story

Attempt to smuggle thousands of birds into Bali thwarted

Government halts operations at eight polluting facilities in Greater Jakarta