Shares on High Shareholding Concentration List Could Face Pressure, Potential Removal from MSCI
JAKARTA, KOMPAS.com - Shares with high concentrated ownership or High Shareholding Concentration (HSC) are potentially facing serious pressure. In fact, the risk could lead to their exclusion from global indices, such as Morgan Stanley Capital International (MSCI).
Market capital analyst and Founder of Republik Investor, Hendra Wardana, assesses that the improvement measures taken by the Financial Services Authority (OJK), the Indonesia Stock Exchange (BEI), and the Indonesian Central Securities Depository (KSEI) are already on the right track.
These reforms include the announcement of HSC, disclosure of ownership above 1 per cent, up to increasing the minimum free float to 15 per cent.
According to him, the standards used by MSCI emphasise transparency, liquidity, and a healthy market structure. In that context, the policies pursued by Indonesian regulators actually strengthen market accessibility and investability, two important factors in assessing emerging markets.
“If viewed from a global perspective, especially the standards used by MSCI, the direction of this policy is actually very appropriate because the core of an advanced capital market is transparency, liquidity, and fair market. That means, in terms of policy direction, Indonesian regulators are already on the right track and in line with the expectations of global institutional investors,” said Hendra to Kompas.com on Monday night (6/4/2026).
“The question is not only about the policy direction, but about implementation and its impact on market liquidity. MSCI has always paid great attention to shares with small free float, illusory liquidity, and ownership structures that are too concentrated,” he explained.
Hendra assesses that with the 15 per cent free float rule and the opening of ownership data above 1 per cent, the practice of price control by majority shareholders can be further minimised. This is important because one reason a market can be downgraded is not due to the size of the economy, but the quality of the market structure.
“Fundamental reform can indeed reduce the chances of downgrade, because Indonesia is improving market accessibility and investability, two things that are the main indicators for MSCI,” he stated.
In the short term, this may feel negative because some shares could decline, or even potentially be removed from global indices.
However, in the long term, it will make the domestic capital market healthier, deeper, and more trusted by foreign investors. A transparent market usually does not rise immediately, but will rise stronger and more stable.