Free Float Methodology

How StockMap Indonesia calculates free float using MSCI-aligned classification

What is Free Float?

Free float represents the portion of a company's shares that are available for trading by the general investing public. Shares held by strategic investors — founders, controlling shareholders, government entities, and cross-holding corporations — are excluded because they are unlikely to be sold on the open market.

Data Source

Ownership data comes from KSEI (Kustodian Sentral Efek Indonesia) — the central securities depository of Indonesia. KSEI publishes monthly reports of all shareholders holding ≥1% of any IDX-listed stock, categorized by investor type.

Investor Type Classification

KSEI categorizes each shareholder into one of 8 investor types. We classify each type following MSCI Global Investable Market Indexes methodology:

Individual Holder Classification (ID Type)

Individual shareholders require special handling. A person holding 8% of a company could be either:

• A founder/director/commissioner — strategic, unlikely to sell → excluded from free float
• A high-net-worth investor — portfolio investment → counts as free float

Percentage alone does NOT determine insider status. We use a multi-layer verification system:

Verification Process

For the third layer, we cross-reference individual shareholder names against known company management data:

1. AI-powered verification: Each individual holder is checked against comprehensive corporate governance databases using large language models (Gemini 3.1 Pro) with knowledge of Indonesian corporate boards, directors (direksi), and commissioners (dewan komisaris).
2. Manual overrides: Known insiders that automated systems miss (e.g., co-founders with small stakes) are added via manual verification with public sources.

How to Read the Data

On each ticker page, shareholders are displayed with visual indicators:

• Individual holders marked AFFILIATED are verified insiders (directors, commissioners, founders) and excluded from free float.
• Corporate (CP), Bank (IB), Foundation (FD), and Other (OT) holders are always excluded from free float by their investor type — no badge needed, their type tells the story.
• All remaining holders — individuals without insider status, mutual funds, insurance, pension funds, securities companies — count toward free float.

MSCI Alignment

Our methodology follows the MSCI Global Investable Market Indexes Methodology framework for free float adjustment, adapted for Indonesian market data:

• Government holdings → captured under CP (e.g., PT Danareksa for TLKM) or OT type (e.g., sovereign funds like People's Bank of China)
• Cross-holdings → captured under CP type
• Strategic individuals → verified via our insider classification system
• Treasury shares → typically reported under CP type when the company holds its own shares above 1%

For the full MSCI methodology, refer to: MSCI Index Methodology

Limitations

• Only covers holders with ≥1% ownership (KSEI reporting threshold)
• Some small-cap company insiders may not be captured if they are not in public corporate governance databases
• KSEI data is published monthly — intra-month ownership changes are not reflected
• Nominee accounts may obscure the ultimate beneficial owner