IDX and KSEI Prepare Data Infrastructure for MSCI’s Free Float Adjustment
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JAKARTA, Investortrust.id — The Indonesia Stock Exchange has been working with the Indonesian Central Securities Depository to enhance data infrastructure readiness as Morgan Stanley Capital International prepares to use monthly shareholder reports from KSEI as an additional reference for assessing the free float ratio of listed companies in Indonesia.
Head of Business Development Division 2 at the exchange, Ignatius Denny Wicaksono, said the collaboration between IDX, KSEI, and MSCI is crucial to ensure ownership data reflects actual market liquidity. “All parties want free float data to mirror true liquidity.
That’s what we’re trying to achieve together with KSEI — making the data comprehensive and consistent so index providers have clarity in their calculations,” Denny said during a media briefing on Tuesday, Oct. 28, 2025.
He emphasized that the exchange shares the same interest as MSCI in maintaining data consistency and accuracy, as both play vital roles in market transparency and global index inclusion. Aligning data standards between KSEI and index providers, he added, is essential for ensuring consistency in methodology and investor trust.
Earlier, MSCI opened a market consultation on its plan to integrate monthly shareholder composition reports from KSEI as an additional data source for determining Indonesian stocks’ free float. Currently, listed companies are only required to report shareholders with ownership of 5% or more to the exchange.
In contrast, KSEI’s reports detail share ownership classifications for both corporate and individual investors, domestic and foreign, covering all scripless securities traded electronically. This broader dataset allows detection of ownership below 5%, a segment previously unaccounted for in public disclosures.
However, MSCI clarified that the KSEI data cannot be fully adopted because it does not identify individual shareholders within each ownership category. The information would therefore serve only as a supplementary reference.
Initial simulations by MSCI suggest potential adjustments to the foreign inclusion factor for several large-cap stocks, including Bank Central Asia (BBCA), Bank Rakyat Indonesia (BBRI), Telkom Indonesia (TLKM), Bank Mandiri (BMRI), and Astra International (ASII). The total one-way turnover for the MSCI Indonesia Index could reach about 13% under the full scenario or 5% under an alternative approach.
MSCI will accept market feedback until Dec. 31, 2025, and publish the results of its consultation by Jan. 30, 2026. If approved, the methodology change will take effect in the May 2026 index review.