Indonesia pledges transparency reforms, probes market manipulation after US$80 billion rout

[JAKARTA] Indonesia is scrambling to restore confidence after an MSCI transparency warning triggered an US$80 billion stock rout and toppled senior market officials, pledging a fast-track crackdown on manipulation and tougher disclosure rules including a 15 per cent minimum free float.

Indonesia Stock Exchange (IDX) and capital market authorities are set to meet MSCI on Monday (Feb 2) to discuss the methodology used to calculate public shareholding, or free float – a core issue cited by the index compiler.

Friderica Widyasari Dewi, acting chairwoman and vice-chair of the Financial Services Authority, said she would personally attend the meeting alongside senior officials from the regulator, the exchange and the central securities depository.