In a post on LinkedIn on Friday, Sjahrir responded to renewed scrutiny from global index provider MSCI Inc. over market transparency and investability. Sjahrir, who is also a co-owner of a brokerage sanctioned in connection with a stock-market manipulation probe, emphasized that while market integrity issues must be addressed, the underlying business strength of Indonesian firms should be assessed objectively.
“The market should be fixed, by all means, but the business strength of Indonesian companies should still be assessed objectively,” Sjahrir wrote. He noted the potential impact of these concerns on the country’s 32 million capital market investors, stating that the issues should be taken seriously.
Sjahrir cited data indicating that 134 of 146 listed companies with annual revenue exceeding 5 trillion rupiah ($276 million) recorded profits. He reported that aggregate profits for this group grew 15 percent in the first half of 2026 compared to the same period the previous year, while revenue increased by 7 percent. Additionally, 121 non-financial issuers held a combined 583 trillion rupiah in cash in the second quarter of 2026, a 13 percent year-on-year increase, which he described as providing capacity to finance business expansion.
The CIO also highlighted attractive valuations in specific sectors, noting that 61 of the 146 companies recorded a return on equity above 15 percent. He pointed to businesses in the banking and consumer sectors generating returns on equity of around 20 percent while trading at price-to-earnings ratios below 10 times. Sjahrir advised investors to evaluate stocks based on profitability, growth, cash flow, debt levels, and corporate governance, rather than assuming falling share prices automatically indicate value.
These comments come as Indonesia pushes ahead with capital market reforms aimed at building a more transparent and trusted market. Sjahrir expressed support for reform efforts led by the Financial Services Authority (OJK), the Indonesia Stock Exchange, Bank Indonesia, and the Ministry of Finance. “Ultimately, capital market reform will not be completed overnight, but it must be consistent and deliver visible results,” he said.
While Sjahrir expressed optimism that the country is moving in a better direction, he acknowledged that further work remains to restore confidence. In related developments, FTSE Russell retained Indonesia’s classification as a Secondary Emerging Market, though it is continuing to monitor the implementation and effectiveness of the ongoing reforms.
