JAKARTA: 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.
IDX President Director Jeffrey Hendrik said the move would provide a more accurate reflection of 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, according to state news agency Antara.
The announcement followed IDX's meeting with global index provider MSCI on Monday, 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 said the exclusion would not amount to delisting, as the affected stocks would 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, according to Antara.
Dony said Danantara Investment would 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, he described market fluctuations as normal and emphasised that Indonesia's economic fundamentals remained strong. - Bernama
