Ahead of MSCI Announcement, Exchange Boss Stresses Transparency

The Indonesia Stock Exchange (BEI) has called on listed companies to conduct a comprehensive review of their ownership structures, ensure clear disclosure of beneficial owners, and integrate this into good corporate governance practices. Director of Transaction Supervision and Compliance at BEI, Kristian S Manullang, stated that this aims to enhance transparency and build the trust of capital market investors. According to him, the concept of Ultimate Beneficial Owner (UBO) disclosure is not merely a regulatory obligation, but also a manifestation of a company’s commitment to good governance, integrity, and information openness. “Transparency and clarity in ownership structures have now become important elements for investors. Investors no longer only want to know about a company’s performance, but also want to know who actually owns and controls the company in which they are investing,” he said during the Strengthening Market Integrity event at the BEI building in Jakarta on Thursday (18/6/2026). Kristian explained that UBO disclosure is in line with the capital market reform agenda, specifically the eight action plans to accelerate capital market reform, which cover aspects of liquidity, transparency and governance, as well as enforcement and synergy. “Through increased ownership transparency, we are building a more trustworthy and resilient market foundation,” he noted. Currently, listed companies are required to submit information on shareholders, affiliates of controllers and beneficial owners, as well as share ownership of 5% or more. Additionally, the OJK together with Self-Regulatory Organizations (SRO) have lowered the threshold for shareholder publication to as low as 1%. This enables regulators and the public to have a better view of a company’s ownership structure and relationships with related parties. “This step will strengthen investor confidence while enhancing the credibility of the Indonesian capital market,” he said. Kristian added that regulators and all stakeholders will continue to collaborate to ensure effective implementation. “Through collaborative reform, we can strengthen the credibility of the Indonesian capital market, increase investor confidence, and boost the competitiveness of the Indonesian capital market at the global level,” he concluded. The market is currently awaiting the MSCI Global Market Accessibility Review announcement, scheduled for release on Friday (19/6/2026) early morning. The results of this annual review have massive implications as it evaluates the level of capital market accessibility in various countries along with the quality of their market infrastructure. For the Indonesian equity market, tomorrow’s early morning announcement is always a crucial focus. Any adjustments to market classification methodology, special treatment of equity instruments, or reviews related to regulations on public share weighting limits or free float rules will have a structural impact on the portfolio composition of global passive mutual funds. This decision has the potential to trigger adjustments in investment positions in large transaction volumes. It also has the potential to create liquidity volatility and share price fluctuations for mega-capitalisation issuers on the Indonesia Stock Exchange at the end of the week’s trading close. Besides the Accessibility Review, MSCI will also soon release the MSCI Annual Market Classification Review on Wednesday (24/6/2026) early morning. This release will be decisive for the Indonesian equity market regarding whether Indonesia will remain in the Emerging Market category or, in the worst-case scenario, could be downgraded to Frontier Market, as feared by investors in recent months since the circulation of a notice regarding market transparency by MSCI on Wednesday (28/1/2026).