Flooring Guide by Cinvex – Global stock market data and index provider Morgan Stanley Capital International (MSCI) has announced significant policy reforms concerning the determination of free float for Indonesian stocks.
In its official statement, MSCI acknowledged and responded to a series of new policy measures recently introduced by Indonesia’s Financial Services Authority (OJK). These proactive steps by the OJK aim to enhance the transparency of share ownership, particularly for holdings exceeding 1 percent.
Further strengthening regulatory oversight, OJK’s reforms also encompass more granular investor classification within ownership data and the introduction of a new High Shareholding Concentration (HSC) framework. Concurrently, the regulator is developing a roadmap designed to gradually increase the minimum free float threshold for listed companies to 15 percent.
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MSCI elaborated that it is currently undertaking a thorough evaluation of the scope, consistency, and overall effectiveness of this newly available data. As a result of this ongoing assessment, MSCI intends to implement a temporary policy during its May 2026 index review.
“As part of this evaluation process, MSCI will ensure a temporary treatment for Indonesian stocks during the May 2026 index review,” MSCI stated in its announcement on Tuesday, April 21st.
The specific temporary policies MSCI plans to enforce include freezing any increases in the Foreign Inclusion Factor (FIF), refraining from adding new stocks to the MSCI Investable Market Index, and pausing the promotion of existing stocks to higher capitalization segments.
Furthermore, MSCI indicated the potential for delisting stocks identified by Indonesian authorities, and it will leverage the newly available 1 percent shareholder disclosure data to refine its free float estimations.
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It is important to note, however, that MSCI will not yet fully incorporate and integrate this new data from the revised sources into its current index calculation methodology. This phased approach underscores caution.
“This strategic approach aims to prudently limit index turnover and mitigate investability risk, while simultaneously providing ample time to thoroughly evaluate the effectiveness of the recently announced reforms,” MSCI explained, detailing its rationale.
Looking ahead, MSCI affirmed its commitment to continuous coordination with market participants and relevant authorities. Further developments will be communicated in subsequent market access updates, with the detailed results of its extended evaluation slated for disclosure in the Market Accessibility Review in June 2026.