Indonesia has completed major stock market reforms ahead of MSCI's May index review, Reuters reprted Thursday, citing officials.
Earlier this year, a warning from MSCI about transparency issues in stock ownership and trading triggered heavy selloffs, wiping out around $120 billion on the Jakarta Stock Exchange. The IDX has fallen more than 17% in 2026, making it one of Asia's weakest markets, with global tensions in the Middle East adding pressure, reportedly.
Reforms include releasing more detailed shareholder information and raising the minimum free float of tradeable shares to 15% to improve liquidity and prevent stock price manipulation. The Financial Services Authority (OJK) will also publish a list of stocks with high shareholder concentration after Thursday's market close, fulfilling MSCI's requested changes.
Additional measures allow investors or global index providers to request details on beneficial owners holding more than 10% stakes in listed firms. Companies have up to three years to meet the free float rules. Authorities will review the impact with MSCI in April and are also coordinating with FTSE, it said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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