Jakarta. The Indonesia Stock Exchange (IDX) will step up engagement with global index provider MSCI following a review that keeps temporary limits in place while scrutinizing ownership data and concentration risks.

Acting President Director Jeffrey Hendrik said the bourse met MSCI on April 16, with four IDX proposals acknowledged during the discussion.

“IDX will maintain intensive communication with both MSCI and global investors to strengthen the domestic capital market ecosystem and enhance investor confidence,” he said on Tuesday.

MSCI recently updated its assessment of Indonesia’s free float and investability, a follow-up to ownership data transparency reforms by the Financial Services Authority (OJK), IDX, and the Indonesian Central Securities Depository (KSEI).

The index provider is still evaluating the coverage, consistency, and effectiveness of the new data, including the use of shareholdings above 1%,  as part of its global methodology.

For the May 2026 quarterly index review, MSCI opted to keep interim measures: freezing increases in the Foreign Inclusion Factor (FIF) and Number of Shares (NOS), making no additions to the MSCI Investable Market Indexes (IMI), and avoiding migrations across index segments.

MSCI also reiterated it will apply global standards consistently, including for stocks flagged with High Shareholding Concentration (HSC). Such names risk exclusion, while the latest ownership data may be used to refine free float estimates.

Mirae Asset Sekuritas Indonesia analyst Wilbert Arifin said the decision largely matched market expectations, particularly as the risk of Indonesia being downgraded to frontier market status has eased.

However, Wilbert cautioned that pressure remains from potential HSC-based exclusions and adjustments to FIF, which could affect Indonesia’s weight in global indices.

Arifin added that Barito Renewables Energy (IDX: BREN) and Dian Swastatika Sentosa (IDX: DSSA) could be among stocks impacted and may face removal in upcoming rebalancing, although no official timeline has been set.

MSCI said full integration of the new data into index calculations will only proceed after the evaluation is complete and market feedback is fully considered, with the next update due alongside the Market Accessibility Review in June 2026.

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