IDX Composite (JKSE) MSCI's Indonesia Rule Change NEWS:
MSCI is changing how it calculates the free float specifically for Indonesian shares, as it assesses that the data on public ownership has been inaccurate.
Key Changes:
The free float will be calculated by taking the lower figure between the data from company reports and the data from KSEI (which categorizes "corporate," "others," and "scrip" ownership as non-free float).
This rule will be tested until the end of 2025 and officially implemented in the May 2026 review.
MSCI is also changing its free float rounding rule, which could lower the index weight of some stocks.
Implications:
Since many Indonesian shares are owned by large corporate groups, the free float figure will decrease, potentially reducing Indonesia's overall weight in the MSCI indices.
Consequently, the potential for foreign outflows increases (due to index weight adjustments).
Four stocks are at the highest risk of being deleted from the index: CUAN, ICBP, KLBF, and INDF.
In short:
MSCI is making the free float calculation for Indonesia stricter and more realistic—the effect could trigger foreign fund outflows from several large-cap stocks as their weights are expected to fall.
Technical Analysis:
*The chart tells everything.
