Acting Director of the Indonesia Stock Exchange (BEI), Jeffrey\nHendrik, stated that the exchange authority met with Morgan Stanley\nCapital International (MSCI) on 16 April 2026. A few days later, MSCI\nissued a decision to continue the temporary freeze on Indonesian\nstocks.<\/p>\n
\u201cAlthough in accordance with the agreement between both parties the\ndetails of the meeting are confidential, we can state that the meeting\nproceeded constructively,\u201d said Jeffrey when contacted by Tempo on\nTuesday, 21 April 2026. He stated that BEI always respects the\nindependence of global index providers, including MSCI.<\/p>\n
BEI appreciates MSCI\u2019s recognition of four proposals that have been\nimplemented as efforts to increase transparency to the public. The four\nsteps are: enhancement of share ownership transparency above 1 per cent,\nstrengthening of investor classification granularity, implementation of\na high share ownership concentration framework, and increase in the\nminimum free float threshold.<\/p>\n
Jeffrey said that BEI will continue to communicate with global index\nproviders, such as MSCI and FTSE Russell. \u201cWe will also communicate\nintensively with global investors to convey the four reform actions that\nhave been carried out, as well as to hear input from global investors,\u201d\nhe said.<\/p>\n
In its announcement, MSCI acknowledged a series of capital market\ntransparency reform steps in Indonesia. MSCI is currently conducting\nfurther assessments based on new data sources generated from Indonesia\u2019s\ncapital market reform initiatives, including gathering input from global\nmarket participants.<\/p>\n
\u201cMSCI is evaluating the scope, consistency, and effectiveness of the\ndata sources, as well as the new measures in the context of determining\nfree float and broader investability assessments,\u201d MSCI wrote in its\nannouncement on Monday, 20 April 2026. MSCI also decided to maintain the\nmeasures announced in January for the May 2026 index review.<\/p>\n
First, MSCI is freezing all increases in Foreign Inclusion Factors\n(FIF) and Number of Shares (NOS). Second, MSCI will not apply index\nadditions to the MSCI Investable Market Indexes (IMI). Third, MSCI will\nnot apply upward migrations between segments, including from Small Cap\nto Standard Index.<\/p>\n
In addition, MSCI will remove stocks identified as having high\nownership concentration. MSCI will also be able to use shareholder data\nabove 1 per cent to adjust free float estimates. According to MSCI, this\ntreatment is the same as in other countries.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/bei-meeting-with-msci-proceeds-constructively-1776851542", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }