BEI Chief Speaks Out on MSCI Announcement, Here's What He Said

The Indonesia Stock Exchange (BEI) has commented on the announcement regarding the fate of the rebalancing of Indonesia’s index by Morgan Stanley Capital International (MSCI). Acting CEO of BEI Jeffrey Hendrik stated that his team met with MSCI on 16 April 2026. He appreciated that the four proposals submitted jointly with self-regulatory organisations have been accepted by MSCI. “We will continue to communicate with the index provider. We will also continue to communicate with global investors to obtain input for strengthening the capital market going forward,” Jeffrey said on Tuesday (21/4/2026). More technically, Jeffrey did not deny the possibility of an announcement on special treatment for High Concentration Shareholders (HSC) for stocks included in the MSCI index, such as DSSA and BREN. It is known that MSCI stated it would remove issuers on the HSC list from its index. “It will be announced soon,” Jeffrey replied briefly regarding HSC stocks in the MSCI index. Previously, MSCI announced an update related to the assessment of free float for Indonesian securities in its global indices on Monday (20/4/2026). This announcement is a follow-up to the previous release on 27 January 2026, when it froze the rebalancing of the Indonesia index. “MSCI notes the capital market transparency reforms announced by the Financial Services Authority, the Indonesia Stock Exchange, and the Indonesian Central Securities Depository,” as quoted from the official website announcement on Tuesday (21/4/2026). These reforms include increased disclosure of shareholders holding more than 1% and more detailed investor classifications. In addition, regulators have introduced the High Shareholding Concentration (HSC) framework and a roadmap to increase the minimum free float to 15%. MSCI is currently evaluating the scope, consistency, and effectiveness of these new policies in the context of determining free float and investment eligibility. In the May 2026 index review, MSCI decided to maintain the temporary policies that have been in place for Indonesian securities. These policies include freezing increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS), and not adding new stocks to the MSCI Investable Market Indexes (IMI). MSCI will also not upgrade stocks between market capitalisation segments, including from small cap to standard. On the other hand, stocks identified under the Indonesian authorities’ HSC framework will be removed from the index in accordance with MSCI’s global policies. Furthermore, MSCI may use 1% shareholder disclosure data to adjust free float estimates if necessary. However, other new data will not be incorporated into index calculations until the evaluation process is complete and input from market participants has been considered. This step is taken to limit index turnover and investability risks while allowing time for evaluating the newly implemented reforms. MSCI emphasised that it will continue to coordinate with market participants and relevant authorities in Indonesia. Looking ahead, MSCI is open to input from market participants regarding the effectiveness of the new policies. Further updates are expected to be provided in the Market Accessibility Review scheduled for June 2026.