OJK: MSCI Acknowledges Indonesia's Capital Market Improvement Steps

The Financial Services Authority (OJK) has responded to the announcement by Morgan Stanley Capital International (MSCI) regarding the continuation of the temporary freeze on Indonesia’s stock index. OJK’s Executive Head of Capital Market, Financial Derivatives, and Carbon Exchange Supervision, Hasan Hawzi, stated that MSCI has noted and acknowledged various strategic steps taken by his institution alongside the Indonesia Stock Exchange (BEI) to strengthen transparency and integrity in Indonesia’s capital market.

“Various strategic initiatives above are part of ongoing efforts to improve market governance quality, strengthen investor protection, and encourage Indonesia’s capital market to become more credible, transparent, and globally competitive,” Hasan said in a press release on Tuesday, 21 April 2026.

The initiatives that have caught MSCI’s attention include increased transparency of share ownership above 1%, strengthening the granularity of investor classification, implementation of a high share ownership concentration framework, and an increase in the minimum free float limit.

OJK’s Chairperson of the Board of Commissioners, Friderica Widyasari Dewi, assessed that MSCI’s initial recognition of the achievements in national capital market transparency reforms is a positive signal regarding the policy direction pursued by Indonesia. “Going forward, the implementation of these 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,” Friderica said.

In its statement, MSCI acknowledged a series of capital market transparency reform steps in Indonesia. 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.

“MSCI is evaluating the scope, consistency, and effectiveness of data sources, as well as new steps 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 maintain the steps 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 apply 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 stocks identified as having high ownership concentration. MSCI may also use shareholder data above 1% to adjust free float estimates. According to MSCI, this treatment is the same as in other countries.