OJK Chief Speaks Out on MSCI Announcement, Gives This Signal
Jakarta, CNBC Indonesia - The Financial Services Authority (OJK) welcomes the announcement regarding the Update on Free Float Assessment of Indonesian Securities issued by MSCI Inc. on 20 April 2026.
The Executive Head of Capital Market, Derivatives Finance, and Carbon Exchange Supervision at OJK, Hasan Fawzi, stated that the announcement confirms MSCI’s recognition of various strategic steps taken by OJK together with the Indonesia Stock Exchange (BEI) and the Indonesian Central Securities Depository (KSEI) to strengthen transparency and integrity in the Indonesian capital market.
“Various strategic initiatives above are part of ongoing efforts to improve market governance quality, strengthen investor protection, and encourage the Indonesian capital market to become more credible, transparent, and globally competitive,” said Hasan.
The capital market reform initiatives that have caught MSCI’s attention include increased transparency of share ownership above 1 percent, strengthening investor classification granularity, implementation of the High Shareholding Concentration (HSC) framework, and increasing the minimum free float limit.
OJK Commissioner Chairman Friderica Widyasari Dewi emphasised that MSCI’s initial recognition of the achievements in national capital market transparency reforms is a positive signal for the direction of policies pursued by Indonesia.
“Going forward, the implementation of reform steps will continue to be maintained to run consistently, measurably, and sustainably, and strengthened through active coordination with various parties, including global market players,” said Friderica.
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 players. This is part of the process to refine the assessment for the MSCI Index Review in May 2026 and the MSCI Market Accessibility Review in June 2026.
OJK views this process as an important momentum to demonstrate the effectiveness of implementing various policies that have been rolled out, with optimism that these concrete steps will further strengthen accessibility and increase the investability of the Indonesian capital market.
As part of the commitment to sustainable reforms, OJK reaffirms that it will continue to promote the strengthening of national capital market integrity through the implementation of eight Action Plans for Accelerating Indonesian Capital Market Integrity Reforms, including increasing transparency, strengthening liquidity, enhancing law enforcement and governance, and market deepening.
With these various efforts, OJK believes that the Indonesian capital market is on the right track to become a deeper, more liquid, and credible market, capable of providing optimal contributions to national economic growth.
As is known, MSCI announced an update related to the free float assessment for Indonesian securities in its global indices as of 20 April 2026. This announcement is a follow-up to the previous release on 27 January 2026, when it froze the rebalancing of its Indonesian indices.
“MSCI notes the capital market transparency reforms announced by the Financial Services Authority, the Indonesia Stock Exchange, and the Indonesian Central Securities Depository,” as quoted from the official announcement on the website, Tuesday (21/4/2026).
These reforms include increased disclosure of shareholders above 1 percent as well as more detailed investor classification.
In addition, the regulator has introduced the High Shareholding Concentration (HSC) framework and a roadmap to increase the minimum free float to 15 percent. MSCI is currently evaluating the scope, consistency, and effectiveness of these new policies in the context of determining free float and investment eligibility.
In the May 2026 index review, MSCI decided to maintain the temporary policy that has been in place for Indonesian securities. This policy includes freezing increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS), and not adding new shares to the MSCI Investable Market Indexes (IMI).
MSCI will also not conduct upgrades between market capitalisation segments, including from small cap to standard. On the other hand, shares identified under the HSC framework by Indonesian authorities will be removed from the indices in accordance with MSCI’s global policies.
Furthermore, MSCI may use 1 percent shareholder disclosure data to adjust free float estimates if necessary. However, other new data will not be incorporated into index calculations until the evaluation process is complete and input from market players has been considered.
This step is taken to limit index turnover and investability risks while providing time for evaluating the newly implemented reforms. MSCI emphasises that it will continue to coordinate with market players and relevant authorities in Indonesia.
Going forward, MSCI opens the door for input from market players regarding the effectiveness of these new policies. Further updates are expected to be provided in the Market Accessibility Review scheduled for June 2026.