IDX Excludes High-Concentration Stocks From JCI
IDX to exclude 80 HSC stocks, representing 18% of JCI weighting.
HSC stocks remain tradable and may re-enter the JCI once they no longer meet HSC criteria.
By David Mandela Layuck, Irhamni Muhammad, Martiza Shakeela Moana Rui, Tahta Auliya
October 23 2026, at 16:30 GMT+7
Following MSCI’s freeze on Indonesian stocks’ inclusion in its indices and the prospect of Indonesia being downgraded to standalone market status, the Indonesia Stock Exchange (IDX) announced plans to exclude 80 stocks classified as High Shareholding Concentration (HSC) from the Jakarta Composite Index (JCI).
These stocks account for approximately 18% of the JCI’s total weight. The measure addresses concerns that concentrated share ownership could distort index movements and reduce the JCI’s ability to reflect broader market conditions.
To implement the policy, IDX and Kustodian Sentral Efek Indonesia (KSEI) issued Joint Decree No. KEP-00047/BEI/03-2026 and KEP-0024/DIR/KSEI/0426 on identifying HSC in listed companies, building on IDX’s 2021 free-float policy for index calculations.
Jeffrey Hendrik, President Director of IDX | Source: IDNfinancials
According to Jeffrey Hendrik, President Director of IDX, “To provide a more credible and high-integrity price index, all HSC shares will be removed from the composite stock price index,” on Monday (10/20). Jeffrey emphasized that the policy would not delist HSC stocks, which would remain tradable on the exchange.
Previously, some stocks had already been excluded from IDX flagship indices, including the IDX30, LQ45, and IDX80. However, these stocks may be reinstated in the JCI once they no longer meet the HSC criteria.
IDX has also refined its HSC methodology by introducing a price impact ratio for stocks with market capitalizations above Rp10 trillion.
The main hall of the Indonesia Stock Exchange (IDX) | Source: TheJakartaPost
The price impact ratio measures the magnitude of a stock’s price movements relative to its trading activity. IDX had already lowered the share ownership disclosure threshold from 5% to 1% as part of its broader market reforms.
The move is intended to ensure more proportionate treatment in free-float calculations. IDX stated that the measure would strengthen capital market integrity by keeping shareholders informed about prevailing conditions and challenges.
Additionally, the policy is expected to make share prices more affordable for prospective investors. Regarding the proposed policy, Jeffrey Hendrik said the exchange would provide further details to the public in the near future.
Sources:
CNBC
IDNFinancials
IDX
Kompas
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