IDX to Discuss Index Rebalancing with MSCI

January 28, 2026 | 11:55 am

TEMPO.CO, Jakarta - The Indonesia Stock Exchange (IDX) responded after Morgan Stanley Capital International (MSCI) temporarily suspended the rebalancing of Indonesian stocks. IDX Corporate Secretary Kautsar Primadi stated that the exchange, along with the Financial Services Authority (OJK) and the Indonesian Central Securities Depository (KSEI), will continue to engage in discussions with MSCI.

"Previously, we had increased transparency by publishing free float data announcements on the IDX website," Kautsar said in a statement on Tuesday, January 27, 2026. If deemed insufficient, IDX will continue discussions with MSCI regarding data transparency to reach an agreement, as per MSCI's proposal.

The temporary suspension of rebalancing the composition and weight of Indonesian stocks is an extension of MSCI's evaluation of domestic free float shares. In its official statement, MSCI said the freeze was due to investor concerns about the transparency of share ownership structures.

According to MSCI, many investors are worried about the categorization of KSEI shareholders. "While there have been minor enhancements to PT Bursa Efek Indonesia's (IDX) float data feed, investors highlighted that fundamental investability issues persist due to ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation," MSCI stated in its announcement cited on Wednesday, January 28, 2026.

With the freezing, MSCI has halted all increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS); MSCI will not apply index additions to MSCI Investable Market Indexes (IMI); and MSCI will not implement upward migrations between segments, including from Small Cap to Standard Index.

MSCI stated that if there is no significant progress in transparency until May 2026, MSCI will reassess Indonesia's market accessibility status. This could result in a weight reduction for all Indonesian stocks in the MSCI Emerging Markets Index and the potential reclassification of Indonesia from an emerging market to a frontier market.

Read: MSCI Freezes Indonesia Stock Index Rebalancing Amid Market Concerns

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