Rebalancing on Hold, IDX Ensures Continued Communication with MSCI

Jakarta (ANTARA) - Acting Director of PT Indonesia Stock Exchange (IDX) Jeffrey Hendrik has ensured continued engagement with global index providers, including MSCI. Additionally, he confirmed that IDX will maintain communications with global investors to gather input for strengthening Indonesia’s capital market. “We will continue to communicate with index providers. We will also continue to communicate with global investors to obtain input for the future strengthening of the capital market,” Jeffrey told reporters in Jakarta on Tuesday. On this occasion, Jeffrey appreciated MSCI’s statement acknowledging four proposals for Indonesia’s capital market reform agenda. “We appreciate that the four proposals we have delivered have been acknowledged by MSCI,” said Jeffrey. He ensured that IDX routinely holds meetings with MSCI, with the most recent meeting on 16 April 2026. “We met with MSCI on 16 April (2026),” said Jeffrey. In its announcement on Monday (20/4/2026), MSCI acknowledged the efforts of the Financial Services Authority (OJK), IDX, and PT Central Securities Depository Indonesia (KSEI) in implementing the capital market transparency reform agenda in Indonesia. However, MSCI still assesses 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 stated it will continue to maintain previously announced measures currently applicable to the Indonesian market, including freezing all increases in Foreign Inclusion Factor (FIF) and Number of Shares (NOS), freezing the addition of constituents to MSCI Investable Market Indexes (IMI), and freezing upward movements between size segments, including from Small Cap to Standard. Additionally, consistent with treatment for other countries, MSCI announced it will remove shares identified by Indonesian authorities as having high shareholding concentration or High Shareholding Concentration (HSC). MSCI may also use 1 percent shareholder disclosure data to adjust free float estimates if appropriate. In its latest announcement, MSCI did not address the potential reclassification of Indonesia from emerging market to frontier market status. Moving forward, MSCI will continue to interact with market participants and relevant authorities in Indonesia, and welcomes feedback from market participants regarding new data sources and measures released by Indonesian authorities, including their effectiveness in determining free float and investability assessments. Subsequently, MSCI will communicate further on this in the market accessibility review in June 2026.