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View all search resultsIndonesia proposes 3 measures to meet MSCI's transparency demands
As part of their eight-point plan, Indonesian authorities have come up with three proposed measures to meet MSCI's transparency demands and avoid potential downgrading to emerging market status.
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Traders and stakeholders attend the closing ceremony for 2025 trading on Dec. 30 in the main hall of the Indonesia Stock Exchange (IDX) in the Sudirman Central Business District in South Jakarta. (TJP/Ni Made Tasyarani)
T
he Financial Services Authority (OJK) and the Indonesian capital market’s self-regulatory organizations (SROs) have proposed a series of measures to meet demands from global index compiler MSCI, which flagged transparency concerns over Indonesian stocks and sparked a major sell-off last month.
The SROs, which include the Indonesia Stock Exchange (IDX) and the Indonesia Central Securities Depository (KSEI), are set to make policy changes as market authorities prepare for a second meeting with MSCI on Wednesday.
“The OJK and SROs have reiterated a strong commitment to implementing bold and ambitious reforms to align with regional and global practices,” Hasan Fawzi, interim chief executive of capital markets at the OJK, told a press conference on Monday.
He elaborated that the authorities had discussed three proposed measures following their first meeting with MSCI on Feb. 2.
The first is to improve transparency by disclosing the names of shareholders that own stakes of 1 percent and above, beginning in February.
The second is to improve data granularity by expanding the KSEI’s investor classification from nine main categories currently to a more detailed breakdown into 28 subsectors, for implementing by the end of March.
Finally, the third is to raise the minimum free float in listed stocks from 7.5 percent to 15 percent, which is also targeted for completion by the end of March.
