OJK Details Outcomes of Talks With MSCI on Free Float and Ownership Transparency

JAKARTA, Investortrust.id — The Financial Services Authority, or OJK, said discussions with global index provider Morgan Stanley Capital International have concluded, with regulators submitting a set of proposals aimed at improving free float levels, liquidity, and ownership transparency in the domestic capital market.

The online meeting was attended by officials from the OJK, the Indonesia Stock Exchange, and other self-regulatory organizations, as Indonesia seeks to address concerns raised by MSCI over market structure and data quality.

OJK said the proposals focused primarily on strengthening disclosure of ultimate beneficial ownership and improving liquidity to support a planned increase in minimum free float requirements.

.

Hasan Fawzi, a member of OJK’s board of commissioners and acting head of capital markets supervision, said regulators plan to expand public access to shareholder data below the current 5% threshold.

Under the proposal, the Indonesia Central Securities Depository (KSEI) would disclose data on shareholders owning more than 1% of a listed company, a move aimed at enhancing clarity around ownership structures.

“Second, we will introduce greater granularity in investor classification within KSEI,” Hasan said at a press conference at the exchange building on Monday. “Currently there are only nine main investor types, but this will be expanded into 27 investor sub-types.”

He said the changes would strengthen verification and credibility in the disclosure of beneficial ownership across listed companies.

.

Regulators also presented a proposal to gradually raise the minimum free float requirement from 7.5% to 15%, a policy that has drawn close attention from global investors amid recent market volatility.

Hasan emphasized that the free float increase would be implemented in stages and with broad support from market participants, including state investment holding Danantara, which attended the discussions.

“The meeting went very well, and we have agreed to continue the discussion at a more technical level,” he said.

.

Hasan added that MSCI would provide methodological guidance on how the proposed reforms would be assessed within its index review framework.

OJK said it would provide regular public updates on the progress of the reform agenda as part of its commitment to improving transparency and market credibility.

“We hope this will be positive progress, and at the final evaluation stage we expect to receive confirmation of acceptance,” Hasan said.