BEI: Meeting with MSCI Proceeds Constructively

Acting Director of the Indonesia Stock Exchange (BEI), Jeffrey Hendrik, stated that the exchange authority met with Morgan Stanley Capital International (MSCI) on 16 April 2026. A few days later, MSCI issued a decision to continue the temporary freeze on Indonesian stocks.

“Although in accordance with the agreement between both parties the details of the meeting are confidential, we can state that the meeting proceeded constructively,” said Jeffrey when contacted by Tempo on Tuesday, 21 April 2026. He stated that BEI always respects the independence of global index providers, including MSCI.

BEI appreciates MSCI’s recognition of four proposals that have been implemented as efforts to increase transparency to the public. The four steps are: enhancement of share ownership transparency above 1 per cent, strengthening of investor classification granularity, implementation of a high share ownership concentration framework, and increase in the minimum free float threshold.

Jeffrey said that BEI will continue to communicate with global index providers, such as MSCI and FTSE Russell. “We will also communicate intensively with global investors to convey the four reform actions that have been carried out, as well as to hear input from global investors,” he said.

In its announcement, MSCI acknowledged a series of capital market transparency reform steps in Indonesia. MSCI is currently conducting further assessments based on new data sources generated from Indonesia’s capital market reform initiatives, including gathering input from global market participants.

“MSCI is evaluating the scope, consistency, and effectiveness of the data sources, as well as the new measures in the context of determining free float and broader investability assessments,” MSCI wrote in its announcement on Monday, 20 April 2026. MSCI also decided to maintain the measures announced in January for the May 2026 index review.

First, MSCI is freezing all increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS). Second, MSCI will not apply index additions to the MSCI Investable Market Indexes (IMI). Third, MSCI will not apply upward migrations between segments, including from Small Cap to Standard Index.

In addition, MSCI will remove stocks identified as having high ownership concentration. MSCI will also be able to use shareholder data above 1 per cent to adjust free float estimates. According to MSCI, this treatment is the same as in other countries.