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JAKARTA, Feb 4 (Reuters) - The Indonesia Stock Exchange will release a draft of new market regulations on Wednesday, the country's financial regulator said, as it looks to move quickly to address concerns raised by index MSCI that triggered an $80 billion market selloff last week.

Indonesia has promised capital market governance reforms after MSCI also warned of a possible downgrade of the $1.4 trillion G20 economy to frontier market status from emerging markets due to problems with ownership and trading transparency.

"The target for the publication of the regulation is March 2026," Hasan Fawzi, interim chief supervisor of capital markets at OJK, Indonesia's financial regulator, said.

The draft regulations, which will include an amendment to increase the minimum free float shares, will be open for feedback from industry stakeholders and the public for the next 10 days, Hasan said.

"OJK are committed to move quickly to review and provide suggestions and guidance for revisions before we implement the proposed regulation," he said.

The Jakarta Composite Index plunged by as much as 16.7% in two days last week, after the MSCI warning triggered a wave of capital flight from investors, who have been cooling on Southeast Asia's largest economy.

(Reporting by Gayatri Suroyo and Ananda Teresia; Editing by Gibran Peshimam and Stephen Coates)

((Ananda.Teresia@thomsonreuters.com;))