IDX Composite Suddenly Opens 2.59% Lower, Here is the Cause
The Indonesia Composite Index (IHSG) opened with a significant slump at the start of trading today, Monday (18/5/2026). The index fell by 94.34 points or 1.40% to the 6,628.97 level. Out of the total stocks, 208 declined, 134 gained, and 349 remained stagnant. Transaction value was recorded at Rp681.16 billion with a trading volume of 860.11 million shares across 82,225 transactions.
Shortly after the opening, the IHSG plummeted even further, reaching a decline of 2.59%. Shares associated with Prajogo Pangestu remain the primary drivers of this weakness, alongside several other issuers, including DSSA, which are under scrutiny by international index providers MSCI and FTSE.
The heaviest pressure on the IHSG since the weekend originated from stocks removed from the MSCI Global Standard Index and the MSCI Global Small Cap Index. MSCI has officially removed six Indonesian stocks from its Global Standard Index, namely: PT Amman Mineral Internasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk (AMRT). Additionally, MSCI removed 13 Indonesian stocks from its Global Small Cap Index.
Following the MSCI announcement, global index provider FTSE also addressed the future of Indonesian stocks within its indices. In a recent announcement titled “Index Treatment for the June 2026 Index Review” released on Wednesday (13/5/2026), FTSE issued a stern signal regarding the potential removal of stocks with high shareholding concentration (HSC) on the Indonesia Stock Exchange (IDX).
These new FTSE rules were issued following efforts by Indonesian capital market authorities to increase transparency, including the publication of the High Shareholding Concentration (HSC) list. In the document, FTSE Russell emphasised that if a company becomes subject to a shareholding concentration warning from exchange and financial authorities—where floating shares are controlled by only a few parties—the stock will be removed from the index during the next review.
“To ensure the integrity and replicability of the index, FTSE Russell will remove securities affected by a zero price during the June 2026 review, effective from the market opening on Monday, 22 June 2026,” the official announcement stated. This “zero price” policy is implemented because FTSE assesses that the liquidity of HSC stocks tends to deteriorate materially. There are concerns that institutional passive fund managers may not find sufficient counterparties to exit these stocks suddenly.
While FTSE has not yet released a specific list of threatened issuers, several stocks appear to be significantly impacted. Two major issuers closely linked to issues of free float and ownership concentration—PT Barito Renewables Energy Tbk (BREN), owned by tycoon Prajogo Pangestu, and PT Dian Swastatika Sentosa Tbk (DSSA) from the Sinarmas group—are under scrutiny as both are on the IDX’s HSC list.
According to Refinitiv data, all trading sectors weakened today, with the deepest pressure felt in the infrastructure, basic materials, energy, and technology sectors. The primary weight dragging down the IHSG this morning was Bank Central Asia (BBCA), which fell 2.5%, contributing 14.05 index points to the decline. Furthermore, Dian Swastatika Sentosa (DSSA) hit the auto rejection lower (ARB) limit, dropping 15% to Rp880 per share, contributing 13.67 index points. Chandra Asri Pacific (TPIA) also hit ARB, falling 14.88% to Rp3,660 per share, contributing 13 index points. BREN also declined, losing its position as the largest market cap issuer in Indonesia, with its contraction contributing 10 index points. Additionally, AMMN, which was removed from the MSCI index last week, contributed 9.12 index points to the decline.