IDX to Exclude All HSC Shares from JCI Calculation
The Indonesia Stock Exchange (IDX) has announced two new initiatives as part of capital-market reforms, following an announcement by Morgan Stanley Capital International (MSCI) last week. One is to remove all shares on the High Shareholding Concentration (HSC) list from the calculation of the Jakarta Composite Index (JCI).
IDX President Director Jeffrey Hendrik said the exchange had held an online meeting with MSCI following its announcement. As with previous meetings, however, the IDX could not disclose the details or conclusions.
“We are committed to continuing capital-market reform after completing four initiatives: disclosing the names of shareholders with stakes above 1%, providing more granular investor data, raising the free-float requirement and announcing the HSC list. We have also removed the minimum price of Rp50,” he said at the IDX Press Room in Jakarta on Monday (19 October 2026).
He said the IDX would continue pursuing initiatives to improve transparency, market credibility and governance.
Under the first initiative, disclosures of shareholders with stakes above 1% will indicate whether they are affiliated or unaffiliated.
The second initiative is intended to ensure a more credible and robust price index: all HSC shares will be excluded from the JCI.
“These two initiatives are expected to improve transparency and integrity. We will announce their effective dates shortly,” Jeffrey said.
He stressed that the move did not amount to delisting; HSC shares would simply no longer be included in the JCI calculation. Previously, HSC shares had also been ineligible for several of the IDX’s flagship indices, including the IDX30, LQ45 and IDX80.
“The aim is to provide a more reasonable picture of the JCI’s movements, given the potential risks associated with HSC shares. These stocks account for 18% of the JCI’s weighting,” he explained.
Shares removed from the HSC list will subsequently be included in the JCI calculation again. Jeffrey also confirmed that issuers whose shares are on the HSC list would face no additional sanctions.
On the status of sanctions against three shares previously sanctioned by the Financial Services Authority (OJK), Jeffrey said the OJK would provide an update directly.
MSCI’s rebuke
MSCI has announced a proposal to reclassify Indonesia’s equity market from Emerging Market to Standalone Market. Consultation on the proposal runs from 15 October 2026 to April 2027, with a final decision due no later than 30 June 2027.
In its announcement, MSCI said institutional investors had stressed the need for consistent implementation and sustained evidence of a material impact from the policies announced. It also said there was not yet evidence of meaningful enforcement. MSCI is continuing to freeze certain index changes for Indonesian shares until further notice.
MSCI nevertheless acknowledged the capital-market reform initiatives already under way in Indonesia, including disclosure of shareholdings above 1%, more granular investor classification, the HSC announcement and an increase in the minimum free-float requirement. OJK Chief Commissioner Friderica Widyasari Dewi said the authority respected MSCI’s views and was continuing to make improvements and follow up on its feedback.
The announcement followed an MSCI assessment in June. In its 23 June 2026 review, MSCI said it would consider several options if progress remained inadequate ahead of its November review, including consulting on reclassifying Indonesia as a Frontier Market.
The market reacted immediately. The JCI fell 11.6% in trading on Friday (16 October 2026), then dropped by more than 3% again on Monday (19 October), reaching its lowest level in six years.