Indonesian officials say stock market reforms required by MSCI have been completed

MaticHoleFiller · 2026-04-04T03:31:15+00:00

Indonesia has completed stock market reforms required by MSCI, aimed at restoring investor confidence. The reforms include increasing the free float to 15% and publishing shareholder data. This move addresses rating risks caused by lack of transparency and is expected to enhance market liquidity and combat manipulation.

MaticHoleFiller

2026-04-04 03:31:15

Abstract generation in progress

An Indonesian senior official said on Thursday that Indonesia has completed the stock market reforms required by index provider MSCI, a move intended to restore investors’ confidence in the Southeast Asia’s largest economy.

The chief capital markets regulator at the Indonesian Financial Services Authority (OJK), Hasan Fazi, said that after the stock market closes on Thursday, the authorities will release a list of stocks with high shareholder concentration.

In late January this year, MSCI issued a warning that Indonesia faced the risk of a rating downgrade because of concerns about a lack of transparency in stock ownership and trading, triggering large-scale selling. After that, Indonesia rolled out a series of proposed capital market reform plans.

After MSCI issued the warning, the Jakarta Stock Exchange (IDX) saw its market value erode by about $120 billion. Since the beginning of this year, the index has fallen by more than 17%, making it one of Asia’s worst-performing stock markets, while the Middle East conflict has further intensified the pressure.

Reform measures pledged by Indonesian authorities include disclosing more detailed shareholder data and doubling the minimum “free-float” percentage of tradable shares in listed companies to 15%, a move aimed at improving liquidity and preventing share-price manipulation.

This week, the Indonesian stock exchange published implementation rules for the free-float requirements, giving companies a transition period of up to three years.

“We will continue to crack down severely on violations in the capital market, including manipulating share prices, to rebuild market trust,” Hasan said.

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Editor: Yu Jian SF069

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