April 22, 2026 | 12:00 pm
TEMPO.CO, Jakarta - Indonesia's Financial Services Authority (Otoritas Jasa Keuangan / OJK) responded to the announcement made by Morgan Stanley Capital International (MSCI) to extend the temporary suspension of the Indonesian stock index. Hasan Hawzi, the Executive Head of Capital Market Supervision, Financial Derivatives, and Carbon Emissions Exchange at OJK, stated that MSCI has taken note of and recognized various strategic steps taken by the institution along with the Indonesia Stock Exchange (Bursa Efek Indonesia/BEI) to strengthen the transparency and integrity of the Indonesian capital market.
"The strategic initiatives mentioned above are part of continuous efforts to improve the quality of market governance, strengthen investor protection, and drive the Indonesian capital market to become more credible, transparent, and globally competitive," said Hasan in a press release on Tuesday, April 21, 2026.
Initiatives that have garnered MSCI's attention include increased transparency of share ownership above 1 percent, strengthening the granularity of investor classifications, implementing a framework for high share ownership concentration, and raising the minimum free float limit.
The Chairman of the OJK Board of Commissioners, Friderica Widyasari Dewi, perceives MSCI's initial recognition of the achievements in reforming the transparency of the national capital market as a positive signal regarding the direction of Indonesia's policies. "In the future, the implementation of reform measures will be consistently and measurably maintained, and strengthened through active coordination with various parties, including global market players," said Friderica.
In its statement, MSCI acknowledges a series of reform measures on the transparency of the Indonesian capital market. MSCI is currently conducting a further assessment based on new data sources resulting from Indonesia's capital market reform initiatives, including gathering input from global market players.
"MSCI is assessing the scope, consistency, and effectiveness of data sources, as well as new measures in the context of determining free float and broader investability assessment," MSCI wrote in its announcement on Monday, April 20, 2026. MSCI has decided to uphold the measures announced last January for the May 2026 index review.
First, MSCI is freezing all increments on Foreign Inclusion Factors (FIF) and Number of Shares (NOS). Second, MSCI will not apply index additions to MSCI Investable Market Indexes (IMI). Third, MSCI will not implement upward segment migrations, including from Small Cap to Standard Index.
In addition, MSCI will remove stocks identified as having high ownership concentration. MSCI may also use shareholder data above 1 percent to adjust free float estimates. According to MSCI, this treatment is the same as other countries' markets.
Read: IDX Speaks Out as MSCI Maintains Freeze on Indonesian Stocks
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