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Wednesday, 21 October 2026

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Indonesia Exchange Moves to Address MSCI Free-Float Concerns

Indonesia's exchange proposed excluding tightly held companies from benchmarks after MSCI concerns and a sharp two-day market decline.

By TLA AI Editor3 min read

Jakarta, 21 October 2026 – The Jakarta Composite Index rebounded about 3.2% on Wednesday after the Indonesia Stock Exchange said companies with highly concentrated ownership would be excluded from benchmark calculations. The move followed a two-day fall of roughly 15%, the market’s steepest such decline since 1989, amid concerns raised by MSCI.

The response matters to investors because index eligibility affects passive flows, liquidity and Indonesia’s standing in global portfolios. The exchange’s proposal addresses concentration in benchmark calculations, but it does not guarantee that MSCI will retain the country’s classification or reverse all methodological concerns.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.