JAKARTA, Oct 19 — The Indonesia Stock Exchange (IDX) plans to exclude 80 stocks with highly concentrated ownership, currently accounting for 18 per cent of the Jakarta Composite Index (JCI), as part of efforts to improve market transparency and integrity.
State news agency ANTARA reported that its president director Jeffrey Hendrik said the move will better reflect market movements by addressing potential risks associated with stocks classified under High Shareholding Concentration (HSC).
“Going forward, all shares classified under High Shareholding Concentration (HSC) will also be excluded from the JCI calculation,” he said.
The announcement followed IDX's meeting with global index provider MSCI Inc. today, after the latter proposed reclassifying Indonesia from an Emerging Market to a Standalone Market, with a final decision expected by the end of June 2027.
Jeffrey added that the exclusion would not amount to delisting, as the affected stocks will remain tradable on the exchange, although their price movements would no longer influence the benchmark index.
Separately, Danantara Indonesia chief operating officer Dony Oskaria said the sovereign investment agency planned to increase its shareholdings in listed state-owned enterprises (SOEs), prioritising companies with strong fundamentals.
“If the stocks are good, we will buy them, particularly SOE shares, and increase our ownership,” he said.
Dony noted that Danantara Investment will seek opportunities amid fluctuations in Indonesia's capital market, although he did not specify the companies being targeted or the amount of investment planned.
Commenting on the recent decline in the JCI, Dony described market fluctuations as normal and emphasised that Indonesia's economic fundamentals remained strong.
