MSCI be like : "this is too much already"


MSCI Announcement

MSCI Method Adjustment on Indonesia’s Float Calculation… MSCI announced that they are doing a consultation in regards to the calculation of Indonesia constituents’ free-float calculation (yes, only for Indo…). They will accept inputs from market participants until 31 Dec 2025; and results will be announced on/before 30 Jan 2026. If implemented, this adjustment will be made on the May 2026 review for the current IMI constituents – however to avoid potential reverse turnover MSCI will start implementing the new rule effective immediately until May 2026 review for non-IMI constituents (read: new constituents). The proposed free-float methodology for Indo companies is the lower of:

Free float calculated using shareholding data disclosed in company filings, reports, and press releases; and
Free float estimated from KSEI (clearing agency), by classifying all Scrip shares (not disclosed in the KSEI report), and holdings under Corporates and Others as non-free float.
Alternatively: Estimate the KSEI-based free float by considering only Scrip shares and Corporates as non-free float.

Now after imputing the changes of the upcoming new ‘rounding’ calculation that is going to be implemented by MSCI in the upcoming May 2026 review based on high float (>25% float, round to closest 2.5%), low float (5-25% float, round to closest 0.5%) and very low float (<5% float, round to closest 0.5%) – you can find calculation on below tables. Basically Indonesia will see sizable outflows if implemented because of the size of ‘Corporates’ and ‘Others’ ownership; as well as the constituents have been enjoying the big positive rounding factor impact in the past too. If this new rule is implemented, there are 4 names that are at risk of exclusions (on order of highest to lowest risk) which are: CUAN, ICBP, KLBF, INDF.

Please let us know if you have any questions or want to discuss further.



$BREN $RAJA RATU BRPT $CUAN PTRO