KONTAN.CO.ID \u2013 JAKARTA. The Indonesia Stock Exchange (IDX) launched a\nnew index, the IDX Commodity 20 (IDXCMDTY20), on 30 October 2026,\naccording to IDX announcement No.\u00a0Peng-00208\/BEI.POP\/10-2026.<\/p>\n
The index measures the share-price performance of 20 companies that\nproduce commodities or operate in commodity industry supply chains,\nselected for their high market capitalisation and good trading\nliquidity.<\/p>\n
IDX Development Director Iding Pardi said the new index provides an\ninvestment benchmark to help investors monitor the performance of\ncommodity-based companies listed on the stock market.<\/p>\n
\u201cIt can also serve as a reference for investors identifying\ninvestment opportunities in companies operating across various commodity\nindustries, while supporting portfolio diversification strategies,\u201d he\ntold Kontan on Friday (30 October 2026).<\/p>\n
\u201cIt enables investors to gain exposure to shares in commodity-based\ncompanies through a structured and transparent investment instrument,\u201d\nhe said.<\/p>\n
The IDX Commodity 20 is calculated using a capped, adjusted\nfree-float market-capitalisation-weighted methodology, with each share\u2019s\nweighting capped at 15%, subject to adjustments during index\nreviews.<\/p>\n
Iding said constituents are selected through a screening process that\nincludes liquidity criteria, to ensure the chosen shares are\nsufficiently liquid. \u201cThis is particularly intended to support\ninvestment managers in creating and managing products based on the\nindex,\u201d he said.<\/p>\n
To qualify for inclusion, a share must have been listed on the IDX\nfor at least six months, have been actively traded during the past six\nmonths and meet the commodity-based industry classification under the\nIDX Industrial Classification (IDXIC).<\/p>\n
Shares on the High Shareholding Concentration (HSC) list, bearing a\nSpecial Notation or included on the Special Monitoring Securities list\nduring the past six months do not meet the initial screening\ncriteria.<\/p>\n
Kiwoom Sekuritas Equity Analyst Kevin Yudha Pratama said the index\ncould serve as a benchmark for identifying which commodity shares are\nperforming better.<\/p>\n
If a share is lagging, Kevin advised investors to examine the reasons\nfor its decline. This is important because each issuer has a different\nbusiness profile and sensitivity to commodity prices.<\/p>\n
\u201cFor that reason, the IDX Commodity 20 can be used to evaluate\nportfolio performance, but not as the sole basis for investment\ndecisions,\u201d he said.<\/p>\n
Rully Arya Wisnubroto, Head of Research and Chief Economist at Mirae\nAsset Sekuritas, said the launch was a positive development because it\nprovides a more specific benchmark.<\/p>\n
\u201cHowever, investors need to understand that this index is not a\ndirect indicator of commodity price movements. Its performance is also\naffected by the valuation, earnings outlook, capital structure and\nsentiment surrounding each issuer,\u201d he said.<\/p>\n
Overall, Rully considers the commodity sector\u2019s prospects through\nmid-2027 fairly attractive. However, he said market performance could\nbecome more selective and uneven than in 2026.<\/p>\n
Gold continues to benefit from geopolitical uncertainty and demand\nfor asset diversification, he said, although the sharp rise in prices\nhas increased the risk of a correction and volatility.<\/p>\n
Copper, meanwhile, has more structural support from demand. But\nissuers\u2019 earnings prospects still depend on production capacity and the\nsuccessful development of projects, he said.<\/p>\n
\u201cNickel continues to face challenges in balancing global supply and\ndemand. There is potential for a recovery, but not all producers will\nnecessarily benefit equally,\u201d Rully said.<\/p>\n
Ahmad Faris Mu\u2019tashim, Investment Growth Specialist at Korea\nInvestment and Sekuritas Indonesia, added that commodity prices were\nlikely to remain stable for the rest of 2026 and slow in the second half\nof 2026.<\/p>\n
Among the index\u2019s initial constituents, Ahmad favours AADI, citing\nits solid cash position and potential for a high dividend yield.<\/p>\n
Rully\u2019s preferred shares are AADI, INCO, TINS and MEDC, while Kiwoom\nSekuritas favours ADRO, ANTM and AMMN.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/idx-launches-idx-commodity-20-index-analysts-stock-picks-1793379020", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }