OJK Reveals Discussions During Meeting with MSCI Leadership in the US

The Financial Services Authority (OJK) has revealed the results of its meeting with the leadership and analysts of MSCI in the United States last week. The Executive Head of Capital Market Supervision, Derivative Finance, and Carbon Exchange at OJK, Hasan Fawzi, stated that the meeting was constructive and positive, with MSCI expressing recognition for various progress in Indonesia’s capital market integrity reforms. “A week ago, we met directly with MSCI’s leadership. Then also with their analysts. And in that meeting, as later followed by an announcement from MSCI, it was very good, constructive, and positive,” Hasan told reporters at the Indonesia Stock Exchange (BEI) in Jakarta on Monday (27/4/2026). In the meeting, MSCI appreciated several key agendas completed by the regulator, particularly those related to the expectations of global index providers. One of them is the transparency of share ownership above 1%, which was finalised in March 2026 and confirmed to be utilised by MSCI. In addition, OJK has presented a list of stocks with potential high ownership concentration or High Shareholding Concentration (HSC). As of early April 2026, there are nine stocks on that list, including one to two stocks that are constituents of the MSCI index. Hasan noted that MSCI responded positively to the HSC data and stated it would use it as a consideration in index calculations. Even stocks with high ownership concentration could potentially be excluded or not included in the index. Furthermore, OJK has strengthened transparency by expanding investor type classifications from nine to 39 categories. This step is considered crucial as it will help global index providers in selecting stocks that meet the free float criteria for index calculations. On the regulatory side, OJK has also formalised changes to the free float definition and is gradually increasing the minimum free float threshold. From the previous 7.5%, the provision will be pushed to a minimum of 15% for companies listed on the Indonesia Stock Exchange. “Now, what is the next phase? Of course, they will continue with us in periodic discussions that are more directed towards technical discussions to facilitate and assist all parties, especially Global Index Providers, in reading the detailed information we have presented,” he explained. Hasan added that MSCI is scheduled to conduct an index review or rebalancing on 12 May 2026 as part of its quarterly cycle. This momentum is expected to begin reflecting the utilisation of data provided by the Indonesian regulator. Subsequently, in June 2026, MSCI will also conduct a periodic market classification review. OJK hopes that Indonesia will be maintained in the emerging market category in line with the current conditions and developments in the capital market.