Jakarta. The Indonesia Stock Exchange (IDX) is set to hold a follow-up technical meeting with MSCI Inc. this week as part of efforts to accelerate capital market reforms aimed at improving transparency, market integrity, and investor confidence.

The technical-level discussion with Morgan Stanley Capital International (MSCI) is scheduled for Wednesday, after Indonesian authorities submitted a formal reform proposal last week, IDX Acting President Director Jeffrey Hendrik said on Monday.

The engagement follows an initial meeting between IDX and MSCI on Feb. 2. A joint Indonesian team comprising self-regulatory organizations (SROs) and the Financial Services Authority (OJK) submitted detailed reform documents to MSCI on Feb. 5 as a follow-up to those talks.

The exchange plans to present a concrete action plan to accelerate reforms to strengthen the integrity of Indonesia’s capital market, with all commitments targeted for completion by the end of April 2026, in line with feedback from MSCI.

One of the key reform items is the enhancement of investor classification under the single investor identification (SID) system managed by the Indonesian Central Securities Depository (KSEI). The current framework, which consists of nine investor categories, will be expanded to 28 subcategories.

“This step is intended to provide more detailed and accurate information on ownership structures in the market,” Jeffrey said at a press conference in Jakarta on Monday.

IDX will also propose broader disclosure requirements for share ownership. Under the current rules, only shareholders with stakes exceeding 5 percent are required to report their holdings. The exchange plans to lower the reporting threshold to ownership above 1 percent, a move aimed at strengthening transparency and market integrity.

According to Jeffrey, the proposed 1 percent threshold aligns with international best practices. “India has already implemented a 1 percent disclosure requirement. Its market structure and investor base are relatively comparable to Indonesia’s,” he said.

In addition to enhancing ownership transparency, IDX plans to raise the minimum free float requirement for listed companies. The threshold will be increased from 7.5 percent to 15 percent to ensure sufficient shares are available for public trading as a condition for maintaining a listing on the exchange. The transition is expected to take place over the next two to three years and will affect 267 companies.

Jeffrey said all proposals will be discussed in detail during the technical meeting with MSCI, with both sides expected to review the reforms against MSCI’s methodology.

“We will listen to each other. Our objective is to ensure the proposals are in line with MSCI’s framework, or to identify any technical aspects that still need adjustment,” he said.

Pressure on Indonesian equities had been building since October 2025, when early signals of a potential MSCI review of free-float methodology weighed on sentiment. The Jakarta Composite Index slid 1.87% on Oct. 27, with heavy trading reflecting growing unease over liquidity and accessibility.

The sharpest shock arrived in late January after MSCI announced a freeze. On Jan. 28, the benchmark index plunged nearly 7% at the open, triggering a trading halt as losses approached 8%, before closing down 7.35%. Selling intensified the following day, with intraday losses briefly exceeding 10% amid turnover of more than Rp 67 trillion, as foreign and domestic investors rushed to reduce exposure. The IDX and OJK chiefs resigned the next day.

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