Business · Markets · 18 hrs ago
Indonesia exchange to remove 80 concentrated-ownership stocks from main index
The Indonesia Stock Exchange plans to remove 80 stocks from its main index, the Jakarta Composite Index, or IHSG.
These high shareholding concentration stocks account for 18% of the index, according to the exchange.
The stocks will remain available for trading and will not be delisted; their price changes will simply no longer affect the IHSG.
The exchange also plans to identify whether shareholders with at least 1% ownership are affiliated with the company.
The changes aim to make the index more representative by reducing the risk that concentrated ownership can distort share prices.
The reforms come as Indonesia faces investor concerns about market transparency and a possible change in its classification by index provider MSCI.
The exchange says it will announce the start date soon, possibly next month, and will continue talks with MSCI and other global investors.
The Indonesia Stock Exchange announced plans to disclose whether shareholders with at least 1% ownership are affiliated and to remove high-shareholding-concentration stocks from the IHSG index calculation.
The exchange said the changes aim to improve market transparency, credibility and the accuracy of the index.
The 80 HSC stocks account for 18% of the IHSG, but will remain listed and tradable.
Exchange chief Jeffrey Hendrik said the effective date would be announced soon and could be the following month.
Analysts said the changes could make the index more representative, while warning that implementation could cause short-term adjustments and would not guarantee a positive response from MSCI.
- Who
- The Indonesia Stock Exchange (BEI) announced the plans. They affect shareholders with at least 1% ownership and stocks classified as HSC.
- What
- BEI plans to disclose shareholders’ affiliation status and remove HSC stocks from the IHSG calculation.
- When
- Announced on October 19, 2026. The effective date had not been set publicly and could be the following month.
- Where
- Indonesia’s stock market.
- Why
- BEI said the measures aim to improve transparency and credibility and make the IHSG reflect market movements more fairly.
This story does not have two clearly opposing sides.
BEI announced the two reforms and said the effective date could be the following month.
Jeffrey Hendrik held an online meeting with MSCI to discuss reforms and clarify the planned reclassification of Indonesia’s market.
The IHSG fell 3.64% to 4,966.61, its lowest level in six years, according to IDNFinancials.
Analysts discussed the planned HSC removal and its possible effects on the index.
- HSC stocks
- 80 stocks, representing 18% of the IHSG
- Ownership disclosure threshold
- Shareholders with 1% or more
- HSC policy
- Stocks remain tradable but will no longer affect the IHSG calculation
- Possible effective date
- The following month, according to Jeffrey Hendrik
- IHSG on October 19
- Fell 3.64% to 4,966.61
5 sources
Mirae Asset: Keputusan BEI keluarkan saham-saham HSC memang diperlukan
BEI Perkuat Transparansi Pasar Modal
Saham HSC bakal keluar dari IHSG, apa dampaknya?
BEI Bakal Buka Sosok Pemegang Saham 1% yang Terafiliasi Pengendali
Tingkatkan Transparansi dan Kredibilitas Pasar Modal, BEI Inisiasi Dua Strategi Baru
What people are saying
Both initiatives, we hope, will provide better transparency and more integrated market data. We will announce the effective date soon, possibly next month.
We will continue to take initiatives to provide better transparency, a more credible market, and better governance.
For now, I think the decision to remove HSC stocks is a necessary short-term step.
Although this is not a guarantee that MSCI will respond positively.