The Indonesia Stock Exchange (IDX), officially known as PT Bursa Efek Indonesia (BEI), has issued a comprehensive response to the latest report from global index provider MSCI. This significant report, published on Monday, April 20th, focuses on MSCI’s crucial assessment of the free float methodology for Indonesian stocks.
Jeffrey Hendrik, the interim President Director of the IDX, confirmed a pivotal meeting with MSCI on April 16th, 2026. The discussions during this engagement specifically addressed recent developments and ongoing enhancements within the Indonesian capital market. “We are pleased to note that MSCI has acknowledged four key proposals that we presented,” Jeffrey Hendrik stated in an official release on Tuesday, April 21st, highlighting the constructive dialogue between the two entities.
Looking ahead, Hendrik emphasized the IDX’s unwavering commitment to fostering continuous communication with the influential index provider. In parallel, the IDX aims to significantly strengthen its coordination with global investors, proactively seeking their valuable input to further bolster and develop the future of the Indonesian capital market. “We will also continue our dialogues with global investors to gather essential feedback for the future enhancement of our capital market,” Jeffrey reiterated, underscoring a collaborative approach to sustainable market growth.
In its most recent assessment, MSCI specifically acknowledged the significant capital market transparency reforms recently unveiled by key Indonesian financial authorities. These reforms were jointly announced by the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), and PT Kustodian Sentral Efek Indonesia (KSEI). This recognition from MSCI validates Indonesia’s dedicated efforts to enhance market integrity and investor confidence.
“MSCI is currently evaluating the scope, consistency, and effectiveness of these new data sources and policies within the context of free float determination and broader investment eligibility assessments,” MSCI elaborated in its report, as quoted on Tuesday, April 21st. This statement indicates a thorough and meticulous review process being undertaken by the global index firm to ensure accuracy and fairness.
Moving towards the May 2026 Index Review, MSCI affirmed its intention to maintain several previously established policies specifically for Indonesian securities. This decision signals continuity in its approach for the upcoming evaluation period, providing a clear framework for market participants.
These maintained policies include the freezing of increases in both Foreign Inclusion Factors (FIF) and Number of Shares (NOS). Furthermore, MSCI confirmed that there will be no new additions of Indonesian stocks to the MSCI Investable Market Indexes (IMI), nor any upward reclassification of index categories by size, such as from Small Cap to Standard. This reflects a cautious and consistent stance during the current evaluation phase of Indonesian stocks.
Additionally, MSCI announced its plan to remove stocks identified by Indonesian authorities as part of the HSC framework. Conversely, shareholder disclosure data exceeding 1 percent may be utilized to adjust free float estimates, provided it is deemed relevant for ensuring the accuracy of its calculations. This highlights a nuanced approach to data integration, ensuring that all pertinent information is considered.
Nevertheless, MSCI made it explicitly clear that data from these new sources and disclosures will not yet be incorporated into free float assessments or index calculations until its comprehensive evaluation process is complete. This also extends to when feedback from market participants has been fully received and thoroughly analyzed. This underscores MSCI’s commitment to robust due diligence and stakeholder engagement.
“MSCI plans to provide further updates on these matters during its Market Accessibility Review, which is scheduled for June 2026,” MSCI concluded, setting a definitive timeline for its next announcement regarding these critical assessments and developments within the Indonesian capital market.