IDX Responds After MSCI Continues Suspension of Indonesian Stocks

PT Bursa Efek Indonesia (IDX) has responded after Morgan Stanley Capital International (MSCI) decided to continue the temporary suspension of the Indonesian stock index. Acting Director of IDX Jeffrey Hendrik stated that the exchange authority held a meeting with MSCI on 16 April 2026 as part of ongoing dialogue to improve the quality and transparency of Indonesia’s capital market.

“We appreciate that the four main proposals we submitted together with stakeholders—including enhancing ownership transparency, more granular investor classification, the High Shareholding Concentration (HSC) framework, and a roadmap for increasing the minimum free float—have been recognised by MSCI as constructive steps aligned with international best practices,” Jeffrey said in a written statement on Tuesday, 21 April 2026.

Jeffrey stated that IDX is optimistic about the direction of capital market reforms. IDX will also continue to strengthen communication with various index providers and global investors to gather input. The exchange believes these strategic steps will enhance investor confidence, strengthen market integrity, and bolster the position of Indonesia’s capital market to be more competitive.

In its statement, MSCI acknowledged a series of capital market transparency reform measures in Indonesia. “MSCI is assessing the scope, consistency and effectiveness of data sources, as well as new measures in the context of determining free float and broader investability assessments,” MSCI wrote in its announcement on Monday, 20 April 2026.

MSCI decided to maintain the measures announced in January for the May 2026 index review. First, MSCI will freeze all increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS).

Second, MSCI will not implement additions to the MSCI Investable Market Indexes (IMI). Third, MSCI will not apply upward migrations between segments, including from Small Cap to Standard Index.

Additionally, MSCI will remove stocks identified as having high ownership concentration. MSCI may also use shareholder data above 1 percent to adjust free float estimates. According to MSCI, this treatment is the same as for other countries’ markets.