Indonesia's IDX exchange is tightening trading controls following MSCI's warning that the country's market could fall to "isolated" status. The regulatory changes are aimed at increasing control over the activity and shareholding structures. The relevant committee will include independent experts. Starting November 2, shares of 80 companies characterized by highly concentrated ownership will be excluded from Jakarta's main index. In addition, the exchange intends to freeze investor accounts if suspicious activity is discovered. At the same time, IDX extends until June 2027 the authorization for companies to buy back their shares without the prior approval of a shareholders' meeting. Therefore, increased supervision is accompanied by the preservation of a more flexible repurchase procedure. MSCI's warning does not yet mean that the market classification has been revised. But the very prospect of downgrading the status forces the stock exchange to change the rules of circulation of securities and the control over the behavior of trading participants.

Indonesia's IDX exchange is tightening trading controls following MSCI's warning that the country's market could fall to "isolated" status. The regulatory changes are aimed at increasing control over the activity and shareholding structures. The relevant committee will include independent experts. Starting November 2, shares of 80 companies characterized by highly concentrated ownership will be excluded from Jakarta's main index. In addition, the exchange intends to freeze investor accounts if suspicious activity is discovered. At the same time, IDX extends until June 2027 the authorization for companies to buy back their shares without the prior approval of a shareholders' meeting. Therefore, increased supervision is accompanied by the preservation of a more flexible repurchase procedure. MSCI's warning does not yet mean that the market classification has been revised. But the very prospect of downgrading the status forces the stock exchange to change the rules of circulation of securities and the control over the behavior of trading participants.