For MSCI's Sake, OJK and Partners Overhaul Capital Market Transparency
Jakarta – The Financial Services Authority (OJK), together with the Indonesia Stock Exchange (BEI) and the Central Securities Depository Indonesia (KSEI), has finalised four agendas for reforming capital market transparency, which form part of Indonesia’s proposal to global index providers, including MSCI.
The Executive Head of OJK’s Capital Market, Derivatives Finance, and Carbon Exchange Supervision, Hasan Fawzi, stated that these four agendas are components of the eight action plans for accelerating capital market integrity reforms, which were launched on 1 February 2026.
“Thus, the four proposals submitted by Indonesia to the Global Index Providers have been completed and finalised in line with the targeted schedule,” explained Hasan, as quoted from a press release on Thursday, 2 April 2026.
“Next, we will continue constructive communication and engagement with the Global Index Providers, as well as gather feedback from investors,” he added.
The four agendas encompass the provision of data on share ownership in listed companies exceeding 1 per cent to the public, the implementation of High Shareholding Concentration (HSC) announcements, an enhancement in the granularity of investor classifications to 39 types, and an increase in the minimum free float limit to 15 per cent through amendments to Exchange Regulation Number I-A.
Additionally, there is strengthened transparency through the availability of beneficial ownership data for shareholders holding 10 per cent or more. Hasan noted that these policies align with practices in various global jurisdictions and, in some aspects, are considered superior, particularly regarding the openness of share ownership data above 1 per cent.
He added that these reforms are expected to encourage healthier liquidity and enhance the quality of price discovery in the domestic stock market, while maintaining investor confidence.
In terms of implementation, BEI has adjusted Exchange Regulation Number I-A, effective from 31 March 2026. The changes include the definition of free float shares, an increase in the minimum threshold to 15 per cent, and more comprehensive provisions regarding share classifications, especially in the initial public offering (IPO) process.
Acting President Director of BEI, Jeffrey Hendrik, stated that these policies are also part of harmonisation with global exchange practices. “While maintaining the 5 per cent ownership threshold in line with global standards, this policy is expected to increase liquidity and the attractiveness of investments in Indonesia’s capital market, both for domestic and global investors,” said Jeffrey.