IDX Moves to Address Global Index Concerns as MSCI Talks Loom

JAKARTA, Investortrust.id — Indonesia Stock Exchange said on Saturday, Jan 31, 2026 in Jakarta that it would swiftly follow up on feedback from global equity index providers to strengthen investor confidence and enhance the competitiveness of Indonesia’s capital market.

The commitment was delivered by Jeffrey Hendrik, director of development who acts as the interm director at the exchange, following a series of consultations with international index compilers assessing Indonesia’s market structure.

“We have communicated with several global index providers, gathered their expectations, and all of that will be delivered as quickly as possible,” Jeffrey said during a press conference at Wisma Danantara.

He said the exchange had been closely monitoring developments in global capital markets while intensifying engagement with index providers to accommodate their evaluations of Indonesia’s equity market.

Jeffrey stressed that the effort was aimed at ensuring comfort and protection for both global and domestic investors while safeguarding market stability and credibility.

The exchange’s initiative comes amid heightened scrutiny of Indonesia’s market following decisions by major index providers to reassess methodologies related to free float, ownership transparency, and governance standards.

Jeffrey, who has been widely tipped to serve as interim chief executive officer of the exchange, reiterated the commitment of Indonesia’s self-regulatory organizations to build a world-class capital market.

According to him, market quality should not be judged solely by trading value and market capitalization, but also by transparency and governance standards that align with leading global exchanges.

“We want Indonesia’s capital market to be on par with global exchanges, not only in terms of trading value and market capitalization, but also in transparency and governance,” he said.

As part of that commitment, IDX management will continue strengthening disclosure practices and governance frameworks across all exchange activities.

Jeffrey also expressed appreciation for support from key stakeholders, including the coordinating economic ministry and the financial regulator, in maintaining orderly, fair, and efficient trading.

“We thank the Coordinating Ministry for Economic Affairs, the Financial Services Authority, and all parties that have provided extraordinary support in carrying out our mandate,” he said.

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MSCI Meeting and Free Float Methodology

The exchange confirmed that a scheduled virtual meeting with MSCI regarding free float methodology would proceed as planned on Monday, Feb 2, 2026.

The Financial Services Authority will be represented by Friderica Widyasari Dewi, who currently serves as interim chair and vice chair of the OJK Board of Commissioners.

“I will attend the meeting with Mr. Hasan on Monday, and we will operate from the exchange as usual,” Friderica said.

She is scheduled to be accompanied by Hasan Fawzi, interim head of capital market supervision at OJK, as well as the chief executive of Indonesia’s central securities depository.

From the exchange, Jeffrey will represent IDX in the virtual discussions with senior MSCI officials.

“The meeting will be held online, and I will represent the exchange together with colleagues from OJK,” Jeffrey said.

He explained that the main agenda of the meeting was to reassure global index providers of Indonesia’s strong commitment to improving transparency and strengthening market governance.

MSCI has previously requested additional data transparency related to free float methodology, noting that existing disclosures had not fully reflected actual ownership structures.

In response, IDX said it would continue technical discussions and data sharing in line with proposals submitted by MSCI to reach a mutually acceptable framework.

Pending those discussions, MSCI has implemented temporary measures, including freezing increases in foreign inclusion factors and the number of shares, halting the addition of new constituents to MSCI Investable Market Indexes, and suspending upward migration between size segments.

Market Integrity and Enforcement

Separately, IDX addressed concerns over so-called “junk stocks,” or shares suspected of artificial price manipulation, following sharp price spikes in certain securities linked to conglomerate groups.

Jeffrey said market supervision applied universally and was not directed at any specific group or issuer.

“It does not have to be shares from certain groups, but any activity involving price manipulation in the market is a capital market crime,” he said.

He added that enforcement processes were ongoing and would follow proper legal procedures to determine whether violations had occurred.

Asked whether the perpetrators had been identified, Jeffrey said investigations were still underway.

Oversight mechanisms, including those related to repeated auto-rejection events, were continuing to operate as designed under capital market regulations.

On the same occasion, Coordinating Minister for Economic Affairs Airlangga Hartarto stressed that the government would not tolerate speculative practices or price manipulation in the stock market.

“The government does not tolerate manipulative share pricing or junk stocks,” Airlangga said after a coordination meeting involving economic ministers, OJK, IDX, and the central securities depository.

He said such practices not only harmed investors but also eroded the credibility and integrity of Indonesia’s capital market.

Airlangga warned that market manipulation could deter foreign direct investment, which Indonesia needs to support economic growth, job creation, and sustainable development.

The government, he said, would fully support law enforcement efforts against any parties found to be violating exchange rules, OJK regulations, or financial sector laws.