Jakarta, CNBC Indonesia \u2014 Morgan Stanley Capital International (MSCI)\nhas announced an update regarding the evaluation of Indonesian\nsecurities\u2019 free float as of 20 April 2026, as a follow-up to the index\nrebalancing freeze policy previously announced in January 2026.<\/p>\n
In its statement, MSCI highlighted the capital market transparency\nreform policies implemented by the Financial Services Authority (OJK),\nthe Indonesia Stock Exchange (BEI), and the Indonesian Central\nSecurities Depository (KSEI).<\/p>\n
The capital market reform policies include increased disclosure of\nshareholders holding more than 1%, more detailed investor\nclassification, and the introduction of the High Shareholding\nConcentration (HSC) framework along with a roadmap to raise the minimum\nfree float to 15%.<\/p>\n
In the May 2026 index review, MSCI decided to maintain the temporary\npolicy, namely continuing to freeze increases in the Foreign Inclusion\nFactor (FIF) and Number of Shares (NOS), not adding new stocks to the\nMSCI Investable Market Indexes (IMI), and not upgrading stocks between\nmarket capitalisation segments.<\/p>\n
Additionally, MSCI may use 1% shareholder disclosure data to adjust\nfree float estimates if necessary. However, other new data will not be\nincorporated into index calculations until the evaluation process is\ncomplete and input from market participants has been considered.<\/p>\n
This step is taken to maintain index stability while allowing time\nfor a comprehensive evaluation of the implementation of the new policies\nin the Indonesian capital market.<\/p>\n
In line with this, MSCI also emphasised that stocks falling into the\nHigh Shareholding Concentration (HSC) category are potentially subject\nto exclusion from the indices, in accordance with applicable global\npolicies.<\/p>\n
In this context, two major issuers, PT Barito Renewables Energy Tbk\n(BREN) and PT Dian Swastatika Sentosa Tbk (DSSA), have come under the\nspotlight. Both stocks are at risk of being removed from the MSCI\nindices as they are included in the list of nine HSC stocks released by\nBEI and KSEI.<\/p>\n
BREN and DSSA have very high ownership concentration levels of 97.31%\nand 95.76%, respectively. BREN is an entity owned by conglomerate\nPrajogo Pangestu, while DSSA is part of the Sinar Mas Group.<\/p>\n
Besides these two stocks, there are seven other issuers on the HSC\nlist based on data from BEI and KSEI as of 2 April 2026, namely PT Abadi\nLestari Indonesia Tbk (RLCO) with 95.35% concentration, PT Rockfields\nProperti Indonesia Tbk (ROCK) at 99.85%, and PT Panca Anugrah Wisesa Tbk\n(MGLV) at 95.94%.<\/p>\n
Additionally, there are PT Ifishdeco Tbk (IFSH) at 99.77%, PT Satria\nMega Kencana Tbk (SOTS) at 98.35%, PT Samator Indo Gas Tbk (AGII) at\n97.75%, and PT Lima Dua Lima Tiga Tbk (LUCY) with a concentration level\nof 95.47%.<\/p>\n
The high ownership concentration in these stocks is considered to\nreduce liquidity and impact investability aspects, which is a key\nconsideration in MSCI\u2019s methodology.<\/p>\n
Thus, MSCI is currently evaluating the effectiveness of the\nimplemented reforms, including the use of shareholder disclosure data\nabove 1% to refine free float estimates, while awaiting consistent\nimplementation of the policies in practice.<\/p>\n
The results of the further evaluation are scheduled to be announced\nin the Market Accessibility Review in June 2026, which could determine\nMSCI\u2019s policy direction towards Indonesian stocks, particularly those in\nthe HSC category.<\/p>\n
BEI President Director Jeffrey Hendrik responded that BEI had met\nwith MSCI on 16 April 2026 and appreciated that four proposals submitted\nhad been acknowledged by MSCI.<\/p>\n
\u201cWe will continue to communicate with index providers. We will also\ncontinue to engage with global investors to gather input for\nstrengthening the capital market going forward,\u201d he stated.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/not-just-bren-and-dssa-heres-the-list-of-hsc-stocks-1776747056", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }