Response to MSCI's New Assessment: IDX Ensures It Will Do This

The acting CEO of PT Indonesia Stock Exchange (IDX), Jeffrey Hendrik, has ensured continuous communication with global index providers, including Morgan Stanley Capital International (MSCI). He also confirmed that the IDX will maintain communication 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 strengthening the capital market going forward,” said Jeffrey in Jakarta on Tuesday, 21 April 2026. 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 the IDX routinely holds meetings with MSCI, with the latest meeting on 16 April 2026. “We met with MSCI on 16 April (2026),” said Jeffrey. In its announcement on Monday (20/4/2026), MSCI has recognised the efforts of the Financial Services Authority (OJK), IDX, and PT Indonesian Central Securities Depository (KSEI) in implementing the capital market transparency reform agenda in Indonesia. Nevertheless, 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 that it will continue to maintain the previously announced measures currently applicable to the Indonesian market, including the freeze on all increases in Foreign Inclusion Factor (FIF) and Number of Shares (NOS), the freeze on adding constituents to the MSCI Investable Market Indexes (IMI), and the freeze on upward segment size index movements, including from Small Cap to Standard. In addition, consistent with the treatment of other countries’ markets, MSCI announced it will remove shares identified by Indonesian authorities as shares with high ownership 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 status to frontier market.