Indonesia targets 15 per cent free float compliance in market reforms
Airlangga Hartarto says the government has until June 2027 to address issues raised in MSCI’s assessment, with exchange demutualisation also on the agenda.
Indonesia is focusing on implementing capital market reforms, including compliance with a minimum free float of 15 per cent, as it responds to MSCI’s assessment, Coordinating Minister for Economic Affairs Airlangga Hartarto said on October 23, 2026.
Airlangga said the reform programme had been accepted and the government had until June 2027 to address the issues. The next steps include following up on shares on MSCI’s watchlist and reporting progress publicly so implementation can be monitored.
He characterised the concerns as a matter of share-trading governance, particularly for stocks with limited public ownership, rather than weaknesses in Indonesia’s economy or listed companies. He said corporate fundamentals remained sound in terms of profits and losses and dividend payments.
The reform roadmap also includes demutualisation of the stock exchange. This would change its ownership and governance from a membership-based organisation to a company with a different ownership structure.
Airlangga said risks arising from MSCI’s assessment could be mitigated, pointing to S&P and FTSE Russell as other benchmarks available to global investors. He also expressed government appreciation for the Financial Services Authority’s (OJK) efforts to advance capital market reforms, while stressing that the remaining challenge was to put the measures into practice.
