MSCI Continues to Hold Adjustments to Indonesia Stock Index

Morgan Stanley Capital International (MSCI) has once again held adjustments to the Indonesia stock index. In its announcement, MSCI stated a series of capital market transparency reform measures in Indonesia. These measures include disclosure of shareholders holding more than 1 percent, increased granularity in investor classification, disclosure of high-concentration share ownership, and changes to free float rules. “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 has also decided to retain 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 implement 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 shares identified as having high ownership concentrations. MSCI may also use data on shareholders holding more than 1 percent to adjust free float estimates. According to MSCI, this treatment is the same as in other countries. Furthermore, MSCI will not incorporate data from new sources and disclosures into free float assessments until the review is complete and input from market participants has been received. This approach aims to limit index turnover and investability risks while allowing time for further evaluation. “MSCI will continue to engage with market participants and relevant authorities in Indonesia and welcomes input from market participants on the newly introduced data sources and measures, including their effectiveness for determining free float and investability assessments,” they stated.