JAKARTA, Jan 29 — Indonesia's financial regulator has said that it will double the free float requirement on listed firms to 15 per cent, as part of its response to MSCI concerns about transparency on the country's stock exchange, which prompted massive sell-offs this week.
The Financial Services Authority's head Mahendra Siregar said that several other measures would be taken in response to MSCI's concerns, including measures to make supervision more timely and effective.
Speaking at a media conference today, he said that communication with MSCI had thus far been positive and that it was awaiting a response to its proposed measures, which he hoped could be implemented soon and that the issues could be resolved by March.
The Indonesian authorities have taken MSCI's feedback as "good input" and were open to other policy adjustments, too, if needed.
Separately, the Indonesian Stock Exchange also said it would check the affiliations of shareholders with less than five per cent ownership.
