IDX Releases Full List of 51 Stocks with High Shareholding Concentration

The Indonesia Stock Exchange (IDX) has announced a list of 51 stocks that meet the criteria for high shareholding concentration (HSC), resulting in their automatic removal from major indices such as LQ45, IDX30, and IDX80. IDX President Director Jeffrey Hendrik stated that the updated list includes 37 new stocks, adding to the 14 previously identified, following the introduction of a new criterion called the Price Impact Ratio.

This new criterion applies to stocks with a market capitalisation above IDR 10 trillion. The Price Impact Ratio measures a stock’s price change against its velocity, where velocity is calculated based on the average transaction volume relative to the public free float. Consequently, stocks with low transaction activity but significant price movements will exhibit a high Price Impact Ratio, indicating a high concentration of ownership.

Jeffrey explained that the IDX will conduct periodic evaluations of stocks entering the HSC category on a quarterly basis, aligning with the evaluation cycle of the main indices. He added that screening for potential high shareholding concentration will continue, alongside other supervisory trigger factors. A high shareholding concentration occurs when the majority of a company’s shares are controlled by a small number of parties, groups, or affiliates, leaving a very thin amount of shares actually circulating freely among the public.