Indonesia Stock Exchange reforms draw MSCI scrutiny

The Indonesia Stock Exchange (IDX) has been added to MSCI’s review of market classification as the regulator pushes transparency reforms. MSCI highlighted the high shareholding concentration (HSC) list, adding three issuers – PT Kota Satu Properti Tbk, PT Mahkota Group Tbk and PT Transcoal Pacific Tbk – to the HSC register, which now covers 13 stocks with ownership above 90%. The agency will assess whether Indonesia remains an emerging market or falls to frontier status in its 2026 review.

At the same time, Indonesia is restructuring the IDX’s ownership model. Law No. 4 of 2026 amends the Financial Sector Development and Strengthening Law to demutualise the exchange, allowing individuals, legal entities and the government to hold shares. While the change aims to improve governance, raise capital and potentially list the exchange publicly, it also raises concerns about conflicts of interest because the Ministry of Finance, Bank Indonesia and the sovereign fund Danantara may become shareholders, giving the state a direct role in market supervision.