MSCI Announces Changes to Free Float Calculation Methodology for Indonesian Stocks

Enhanced Methodology to Provide More Comprehensive Public Ownership Data

Morgan Stanley Capital International (MSCI) has announced plans to modify its free float calculation methodology for Indonesian listed companies. The proposed change involves incorporating the Monthly Holding Composition Report (MHCR) from the Indonesian Central Securities Depository (KSEI) as an additional reference source ¹

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Source 2

https://investasi.kontan.co.id/news/free-float-berubah-tiga-saham-ini-digadang-masuk-indeks-msci-global-feb-2026

. Currently, the Indonesia Stock Exchange (IDX) only receives ownership reports for stakes above 5%, while KSEI's data includes holdings below 5%, providing a more detailed picture of public ownership.

Consultation Process and Implementation Timeline

MSCI initiated a public consultation on October 27, 2025, seeking feedback on the proposed methodology change ¹

. The consultation period closed on December 31, 2025. The results of this consultation are expected to be announced by January 30, 2026. If approved, the new methodology will be implemented during the MSCI index review in May 2026.

Potential Impact on Indonesian Stocks

The change in free float calculation methodology could potentially affect which Indonesian stocks are included in MSCI's global indices. Stocks with previously underreported free float due to unreported smaller holdings may see their inclusion or weightage in MSCI indices change. This development is being closely watched by market participants as it could impact foreign investment flows into Indonesian equities.