The Indonesia Stock Exchange (IDX) has stated that Indonesian\ncompanies categorised as High Shareholding Concentration (HSC)\u2014those\nwith highly concentrated ownership\u2014being removed from the MSCI and FTSE\nRussell global indices is a short-term consequence of Indonesia\u2019s\ncapital market reform efforts.<\/p>\n
\u201cStocks within the High Shareholding Concentration (HSC) category\nwere indeed anticipated to be removed by global index providers. I\nbelieve warnings were issued well in advance, and this is something the\nmarket has already anticipated,\u201d said the Acting President Director of\nIDX, Jeffrey Hendrik, at the IDX Building in Jakarta on Monday.<\/p>\n
Jeffrey explained that global index providers such as MSCI and FTSE\nRussell utilise their own specific methodologies for including or\nexcluding Indonesian stocks from their indices, which includes criteria\nregarding HSC stocks.<\/p>\n
\u201cOnce again, this is a short-term consequence that must be accepted,\nbut it is part of our effort to improve our market for the long term,\u201d\nJeffrey added.<\/p>\n
Jeffrey expressed hope that providing clarity regarding these\nshort-term consequences would reduce sources of uncertainty in the\nIndonesian stock market, which has been prevalent in recent weeks.<\/p>\n
\u201cThis means reducing one source of uncertainty in the market. For\nweeks, market participants have been waiting to see how MSCI and FTSE\nwould respond to the reform efforts being carried out jointly by the OJK\n(Financial Services Authority) and SROs (Self-Regulatory Organisations),\nand now everything has been answered,\u201d said Jeffrey.<\/p>\n
Previously, MSCI removed Indonesian stocks categorised as HSC from\nits global indices, including PT Barito Renewables Energy Tbk (BREN) and\nPT Dian Swastatika Sentosa Tbk (DSSA). Subsequently, FTSE Russell also\nannounced plans to remove Indonesian HSC-category stocks from its global\nindices in a notice titled \u2018Indonesia-Index Treatment for the June 2026\nIndex Review\u2019.<\/p>\n
Earlier, on 2 April 2026 and 8 May 2026, the IDX had announced ten\nstocks in the HSC category, including PT BSA Logistics Indonesia Tbk\n(WBSA), PT Barito Renewables Energy Tbk (BREN), PT Dian Swastatika\nSentosa Tbk (DSSA), and PT Abadi Lestari Indonesia Tbk (RLCO), as well\nas PT Rockfields Properti Indonesia Tbk (ROCK), PT Panca Anugrah Wisesa\nTbk (MGLV), PT Ifishdeco Tbk (IFSH), PT Satria Mega Kencana Tbk (SOTS),\nPT Samator Indo Gas Tbk (AGII), and PT Lima Dua Lima Tiga Tbk\n(LUCY).<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/idx-indonesian-stocks-removed-from-global-indices-are-a-short-term-consequence-1780902492", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }