OJK Prepares Three Measures in Response to MSCI

Jakarta, CNBC Indonesia — The Financial Services Authority (OJK) has announced a series of follow-up measures after MSCI raised the possibility of reclassifying the Indonesia Stock Exchange (BEI) from an emerging market to standalone status.

Hasan Fawzi, OJK’s Chief Executive for Capital Markets, Derivatives and Carbon Exchange Supervision, said that alongside reaffirming its commitment to capital-market reform, the authority was ensuring several further measures would be taken in response.

“First, we are extending the period during which share buybacks may be conducted without a general meeting of shareholders (GMS) until June 2027. This responds to issuers’ requests for certainty about the timeframe for buybacks without GMS approval, as some appear to be considering carrying them out,” he said on Monday (26 October 2026).

Hasan said share buybacks must comply with OJK Regulation No. 13 of 2023. To provide flexibility, implementation is also guided by OJK Regulation No. 29 of 2023, particularly Articles 29, 6 and 12, while observing the principles of prudence, companies’ financial capacity and disclosure obligations.

He stressed that buybacks without GMS approval must not disregard minimum free-float requirements. “Under the regulation, issuers will still be required to meet the applicable free-float requirements within the stipulated timeframe,” Hasan said.

Second, OJK is urging the Indonesia Stock Exchange to refine its methodology for high shareholding concentration (HSC), including by improving transparency and governance and involving independent parties outside the self-regulatory organisation (SRO) in the working committee. The aim is to support HSC governance mechanisms and ensure their credibility.

Third, the authority is encouraging the exchange to strengthen its market-surveillance methodology, including the identification of unusual trading patterns and coordinated trading, as well as follow-up procedures for surveillance findings.

“This commitment is not merely talk. Throughout 2026, OJK has imposed case-based administrative sanctions, including fines totalling Rp2.3 trillion on 166 parties, alongside 28 written warnings, eight suspensions, six licence revocations, eight STTD [securities-registration] sanctions, 13 prohibitions and six written orders. In total, for the cases we have announced, including the three major cases disclosed on Friday, 16 October, we imposed fines of Rp283.8 billion on 805 parties,” he said.

Hasan also said reforms would continue across all areas affecting trading integrity and governance quality. OJK would intensify engagement with index providers, investors—particularly global and domestic institutions—as well as retail investors and other market participants.