TEMPO.CO, Jakarta – Indonesia’s Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) have announced a series of measures following a decision by Morgan Stanley Capital International (MSCI) to temporarily freeze the rebalancing of Indonesian stocks’ composition and weighting in its indices.
Chair of the OJK Board of Commissioners Mahendra Siregar said the regulator views MSCI’s decision as important feedback for strengthening Indonesia’s capital market.
He stressed that OJK and self-regulatory organizations, including the IDX, are prioritizing reforms to improve transparency and market integrity.
“Our focus is on comprehensive reform. Improvements are being carried out quickly, accurately, and effectively. To ensure this, starting tomorrow we will also be working directly from here,” Mahendra said during a press conference at the Indonesia Stock Exchange in Jakarta on Thursday, January 29, 2026.
In an official statement released on Wednesday, January 28, 2026, MSCI said the temporary freeze was driven by investor concerns over the transparency of stock ownership structures in Indonesia.
“Despite minor improvements to the free-float data of the Indonesia Stock Exchange, investors continue to highlight fundamental issues related to investment accessibility, including the lack of transparency in stock ownership structures and concerns over potential coordinated trading behavior that could undermine accurate price formation,” MSCI said.
MSCI warned that if there is no significant progress on transparency by May 2026, it will review Indonesia’s market accessibility status.
This could result in a reduction in the weighting of Indonesian stocks in the MSCI Emerging Markets Index, or even the reclassification of Indonesia from an Emerging Market to a Frontier Market.
Measures Taken by OJK and IDX
To address MSCI’s concerns, OJK and the IDX outlined several steps aimed at strengthening transparency and governance in the capital market.
1. Improving Stock Ownership Disclosure
Mahendra said the IDX and the Indonesia Central Securities Depository (KSEI) have revised the method for calculating free float by excluding corporate and certain investor categories.
The changes also include the publication of share ownership data above and below the 5 percent threshold for each ownership category.
“We will ensure that any further adjustments needed are fully implemented so that they meet MSCI’s expectations,” Mahendra said.
2. Raising the Minimum Free-Float Requirement
The IDX will introduce a new regulation requiring a minimum 15 percent free float, up from the current threshold of 7.5 percent.
“The self-regulatory organizations will issue a rule on the minimum 15 percent free float, which will be implemented in the near future with full transparency,” Mahendra said.
The requirement will apply to both existing listed companies and new issuers conducting initial public offerings (IPOs). Companies that fail to meet the requirement within a specified period may face an exit policy under regulatory supervision.
3. Providing Ultimate Beneficial Owner (UBO) Data
To further enhance transparency, OJK and the self-regulatory organizations will begin disclosing ultimate beneficial owner (UBO) data, initially focusing on stocks included in the IDX100 index.
A UBO refers to an individual who ultimately owns or controls a company’s shares, even if their name does not appear directly on the shareholder register.
“Yes, we will provide UBO data,” Mahendra said.
4. Ongoing Coordination with MSCI
OJK’s Head of Capital Market Supervision, Financial Derivatives, and Carbon Exchange Inarno Djajadi said OJK and the self-regulatory organizations held a high-level meeting with MSCI on December 10, 2025, and continue to maintain regular communication.
IDX President Director Iman Rachman is scheduled to meet MSCI representatives next Monday. He said the exchange has also been engaging directly with foreign investors.
“Over the past few days, we have been in direct discussions with foreign investors who asked for clarification on the steps taken by OJK and the self-regulatory organizations,” Iman said.
Read: IDX President Director Resigns to Take Responsibility
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