IDX Prepares Shareholder Concentration List After MSCI Talks, Free Float Reform in Focus

JAKARTA, Investortrust.id — Indonesia Stock Exchange or IDX said on Wednesday, Feb 11, 2026 in Jakarta it will prepare a shareholder concentration list following a follow up meeting with MSCI Inc, as part of broader reforms including a 15% free float requirement aimed at strengthening market transparency, liquidity, and global credibility.

Acting President Director Jeffrey Hendrik said the planned list would identify stocks with concentrated ownership structures and was inspired by similar practices at the Hong Kong Exchange.

"With this implementation, it will further enhance the transparency and integrity of our market going forward," Jeffrey said at a press conference after the meeting with MSCI at the IDX building in Jakarta.

He said the idea emerged after the Self Regulatory Organization reviewed various inputs from MSCI since October and studied practices in other markets.

"If you ask where the 1% figure refers to, that reference comes from India. Meanwhile, the shareholder concentration list refers to Hong Kong. That is the background," he said.

Jeffrey stressed that detailed conclusions from the meeting with MSCI remained confidential under agreed norms, and that the exchange could only disclose general information.

He said the discussion was constructive and reiterated three main action plans presented to MSCI.

The first involves enhanced disclosure of shareholders owning more than 1%, the second provides more granular investor data, and the third concerns the implementation progress of Rule I A on share listings, which raises the minimum free float from 7.5% to 15%.

"As a commitment to improving transparency and market integrity, we also refer to global exchange best practices, including through the issuance of a shareholder concentration list," Jeffrey said.

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Free Float Reform and Market Execution

Separately, Kiwoom Sekuritas Indonesia said the 15% minimum free float policy was structurally necessary but required careful execution and transition design.

Head of Research Liza Camelia Suryanata said the core issue was not the percentage itself but the quality of implementation. "Not all issuers with free float below 15% are problematic stocks. Many have strong fundamentals but concentrated ownership structures," Liza said on Wednesday, Feb 11, 2026.

She warned that structural weaknesses were more visible in low priced stocks with artificial liquidity, where investors often faced limited exit opportunities.

"If the essence is to improve liquidity quality and the price discovery process, then the policy must not stop at meeting numerical thresholds but must also address supervision, ownership transparency, and trading integrity," she said.

Liza recommended a phased implementation over a three year transition period using market based mechanisms rather than administrative mandates.

She outlined several approaches, including transparent buybacks during discounted price periods with gradual re release once valuations reflect fundamentals, forced secondary offerings with strict pricing discipline, auction based divestments to minimize insider advantage, and a strengthened market maker framework to ensure genuine two way liquidity.

"The objective is simple, to increase real liquidity without triggering new structural shocks," she said.

Liza added that if designed properly, the 15% free float reform could become a turning point for the quality of the Jakarta Composite Index and Indonesia’s market attractiveness.

"However, if executed without sensitivity to liquidity dynamics and price stability, short term volatility risks could undermine the confidence that is currently being built. The essence is not to satisfy foreign demands alone, but to ensure that this reform truly strengthens the domestic market structure in a sustainable manner," she concluded.