IDX to Seek Clarification from MSCI on Standalone Status as It Gathers Evidence
The Indonesia Stock Exchange (IDX) says it is taking MSCI’s concerns seriously and will soon seek clarification on the issues the index provider still has with the Indonesian market.
“Behind MSCI are global investors. We have made various efforts to reform the capital market, particularly in terms of transparency and integrity. We have also introduced mechanisms to strengthen liquidity,” said Iding Pardi, IDX Director of Development, at a press conference on Friday (16 October 2026).
The exchange has improved transparency by publishing shareholdings below 1%, compared with the previous threshold of 5%. It is also gradually disclosing data on listed companies with ownership concentrated among a small number of investors, known as high shareholder concentration (HSC).
“We have communicated all of this to global investors. On liquidity, we have removed the Rp50 floor price, lowering it to Rp1. We have begun implementing limited short selling, with controlled risk management,” Iding added.
The IDX said it would communicate with MSCI to establish clearly what prompted the provider to open a consultation on placing Indonesia’s equity market in the standalone market category.
“MSCI’s standalone classification is not the lowest category; it is a special designation for markets that require particular attention. It does not mean a progression from advanced to emerging, frontier and then standalone. Standalone is used for newer markets that need closer monitoring,” Iding explained.
The exchange will identify the remaining transformations it needs to complete before opening consultations with MSCI. It said it had until April 2027 to prepare a proposal and gather evidence that the market had implemented its reforms effectively.
“Through our communications, we will strengthen the evidence that the transformations have been effective for investors. Fundamentally, market activity and liquidity transactions are growing, as is the number of investors. MSCI’s concerns about transparency, integrity and investability relate to the quality of our market,” Iding concluded.