Jakarta, Oct. 23 -- Coordinating Minister for Economic Affairs Airlangga Hartarto said the MSCI report reflects governance issues in stock trading that need improvement, rather than Indonesia's economic fundamentals or listed companies' performance.

According to him, one of the aspects flagged by the rating agency is the requirement for a minimum 15 percent "free float," the portion of a company's shares held by the public.

"For Indonesia, the core issue is not related to economic fundamentals or the fundamentals of the listed companies themselves, but rather to the governance of the trading market, specifically concerning the free float of shares," Hartarto said in Jakarta on Friday.

He emphasized that capital market reforms remain on...