IDX Launches IDX Commodity 20 Index: Analysts’ Stock Picks
KONTAN.CO.ID – JAKARTA. The Indonesia Stock Exchange (IDX) launched a new index, the IDX Commodity 20 (IDXCMDTY20), on 30 October 2026, according to IDX announcement No. Peng-00208/BEI.POP/10-2026.
The index measures the share-price performance of 20 companies that produce commodities or operate in commodity industry supply chains, selected for their high market capitalisation and good trading liquidity.
IDX Development Director Iding Pardi said the new index provides an investment benchmark to help investors monitor the performance of commodity-based companies listed on the stock market.
“It can also serve as a reference for investors identifying investment opportunities in companies operating across various commodity industries, while supporting portfolio diversification strategies,” he told Kontan on Friday (30 October 2026).
“It enables investors to gain exposure to shares in commodity-based companies through a structured and transparent investment instrument,” he said.
The IDX Commodity 20 is calculated using a capped, adjusted free-float market-capitalisation-weighted methodology, with each share’s weighting capped at 15%, subject to adjustments during index reviews.
Iding said constituents are selected through a screening process that includes liquidity criteria, to ensure the chosen shares are sufficiently liquid. “This is particularly intended to support investment managers in creating and managing products based on the index,” he said.
To qualify for inclusion, a share must have been listed on the IDX for at least six months, have been actively traded during the past six months and meet the commodity-based industry classification under the IDX Industrial Classification (IDXIC).
Shares on the High Shareholding Concentration (HSC) list, bearing a Special Notation or included on the Special Monitoring Securities list during the past six months do not meet the initial screening criteria.
Kiwoom Sekuritas Equity Analyst Kevin Yudha Pratama said the index could serve as a benchmark for identifying which commodity shares are performing better.
If a share is lagging, Kevin advised investors to examine the reasons for its decline. This is important because each issuer has a different business profile and sensitivity to commodity prices.
“For that reason, the IDX Commodity 20 can be used to evaluate portfolio performance, but not as the sole basis for investment decisions,” he said.
Rully Arya Wisnubroto, Head of Research and Chief Economist at Mirae Asset Sekuritas, said the launch was a positive development because it provides a more specific benchmark.
“However, investors need to understand that this index is not a direct indicator of commodity price movements. Its performance is also affected by the valuation, earnings outlook, capital structure and sentiment surrounding each issuer,” he said.
Overall, Rully considers the commodity sector’s prospects through mid-2027 fairly attractive. However, he said market performance could become more selective and uneven than in 2026.
Gold continues to benefit from geopolitical uncertainty and demand for asset diversification, he said, although the sharp rise in prices has increased the risk of a correction and volatility.
Copper, meanwhile, has more structural support from demand. But issuers’ earnings prospects still depend on production capacity and the successful development of projects, he said.
“Nickel continues to face challenges in balancing global supply and demand. There is potential for a recovery, but not all producers will necessarily benefit equally,” Rully said.
Ahmad Faris Mu’tashim, Investment Growth Specialist at Korea Investment and Sekuritas Indonesia, added that commodity prices were likely to remain stable for the rest of 2026 and slow in the second half of 2026.
Among the index’s initial constituents, Ahmad favours AADI, citing its solid cash position and potential for a high dividend yield.
Rully’s preferred shares are AADI, INCO, TINS and MEDC, while Kiwoom Sekuritas favours ADRO, ANTM and AMMN.