Indonesia has pledged new equity-market reforms aimed at restoring confidence, with the impact on foreign participation likely to hinge on execution and MSCI’s assessment. The Jakarta exchange plans to exclude tightly owned stocks from the Jakarta Composite Index; these names account for around 18% of the benchmark’s weight. Separately, it intends to require disclosure on whether shareholders with stakes of at least 1% are affiliated with the company.
Equity Reform Measures and Transparency
The measures are designed to tackle concerns over ownership transparency and coordinated trading, but timelines for implementation have yet to be set.
Currency Market Caution
In the meantime, market positioning continues to reflect caution in foreign exchange. Participants have placed hedges against further Indonesian rupiah downside over the short to medium term.
