Indonesia Tightens Stock Rules, Plans 15% Free Float to Avert MSCI Downgrade
Updated
Updated · South China Morning Post · Jul 22
Indonesia Tightens Stock Rules, Plans 15% Free Float to Avert MSCI Downgrade
3 articles · Updated · South China Morning Post · Jul 22
Summary
Indonesia has rolled out new market reforms after MSCI warned it could cut the country’s weighting and potentially start a downgrade process if concerns were not addressed by May.
Authorities now require public disclosure of shareholders with stakes above 1%, more detailed investor classifications and a system to flag highly concentrated ownership.
The overhaul also includes plans to raise the minimum free-float threshold to 15%, targeting MSCI’s concerns over opaque ownership structures and suspected coordinated trading.
Investment Minister Rosan Roeslani said the government has made progress through direct talks with MSCI and framed the changes as a push to build a deeper, more credible capital market.