Hartarto points to share availability and ongoing reforms
Speaking in Jakarta, Hartarto identified free float, the portion of a company's shares held by the public, as a central issue in MSCI's assessment. He acknowledged that some listed companies still fall short of the 15% minimum requirement.
Hartarto said listed companies remained fundamentally strong, citing their profitability and dividend payments. Capital-market reforms were continuing, he said, and authorities should make their progress public so people can track the changes.
"We have until June 2027," Hartarto said. He also identified demutualization of the stock exchange as part of the reform roadmap.
MSCI weighs Standalone Market status
MSCI's October 15 proposal would reclassify the MSCI Indonesia Indexes from Emerging Market to Standalone Market, a category below Frontier Market. The index provider said feedback from market participants indicated that a move to Frontier Markets would not adequately reflect the extent of the market's problems.
The consultation with market participants closes on April 30, 2027, with a final decision due before June 30, 2027. MSCI expects to proceed with reclassification unless the consultation produces clear evidence of material improvements in market governance and functioning.
Since January 2026, MSCI has kept certain changes to its Indonesian indexes on hold following investor concerns over opaque share ownership and allegations of coordinated trading. The freeze covers increases in Foreign Inclusion Factors and Number of Shares, new additions to the MSCI Indonesia Investable Market Index, and moves into larger size-segment indexes.
MSCI said it would continue removing securities identified by Indonesian authorities under the High Shareholding Concentration (HSC) framework. It would also use 1% shareholder disclosure data to revise its free float estimates.
Free float rules have phased deadlines
Indonesia's Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) responded with measures that include fuller share-ownership disclosures and a roadmap for a 15% minimum free float. According to OJK's Investor Relations Unit, amendments to IDX Regulation No. I-A (Listing Rules), issued March 31, 2026, raised the minimum from 7.5% to 15%.
OJK's June 2026 FAQ gives existing companies different compliance deadlines. Those with market capitalization above IDR 5 trillion and free float between 12.5% and 15% must reach 15% by March 31, 2027.
Companies above IDR 5 trillion with free float below 12.5% must first reach 12.5% by March 31, 2027, then 15% by March 31, 2028. Companies below IDR 5 trillion have until March 31, 2029, to meet the 15% minimum.
New initial public offerings have no transition period. The requirements apply immediately at 15% for large-cap listings, 20% for mid-cap listings and 25% for small-cap listings.
Concentration checks and enforcement
In an October 12 update, Mirae Asset Sekuritas Indonesia reported that the HSC list had expanded to 63 stocks. A new price impact ratio test accounted for 37 additions, targeting shares with sharp price movements despite thin liquidity. HSC-flagged stocks were also removed from the IDX30, LQ45 and IDX80 indexes.
OJK reported 1,277 administrative sanctions, prohibitions and/or written orders as of August 31, 2026, for capital-market regulatory and reporting violations. These measures covered issuers, public companies, capital-market supporting professionals and other related parties.
In a separate enforcement update through May 15, 2026, OJK said it had completed examinations in eight market-manipulation cases. It imposed IDR 29.30 billion in administrative fines on 11 parties, including one social media influencer.
Exchange ownership reform moves toward shareholder meeting
OJK established the legal framework for IDX demutualization on September 17, 2026, through POJK No. 13/2026 on Stock Exchange Shareholders. The regulation separates ownership from exchange membership and provides for a shift away from ownership restricted to Exchange Members. Indonesian individuals and legal entities would be eligible to own shares whether or not they are members.
According to Mirae Asset Sekuritas Indonesia, the framework permits the Ministry of Finance, Bank Indonesia and Danantara to hold IDX shares, while stakes above 5% require OJK approval.
IDX scheduled an extraordinary general meeting of shareholders for October 28, 2026, to begin the demutualization process, the firm reported.
