Indonesia to drop high-ownership stocks from Jakarta Composite Index on Nov 2
Eighty Indonesian equities flagged for concentrated ownership will be removed from the Jakarta Composite Index starting Nov 2 as part of market reforms.
Indonesia’s stock market regulator said that 80 companies identified as having overly concentrated ownership will be taken out of the Jakarta Composite Index starting on Nov 2. This action is part of broader capital-market reforms after MSCI warned that dominant shareholders might be manipulating trades, risking a downgrade from “emerging” to “standalone” market status. The 80 stocks account for roughly 18 % of the index’s total weighting.
The exchange will recalculate the index each quarter—in January, April, July and October—replacing the former March, June, September and December timetable. Adjustments to the high-shareholding concentration list made outside the regular review periods will be applied to the index immediately. The change aims to improve market transparency and align Indonesia with international index standards.
Why it matters
Removing concentrated-ownership stocks aims to boost market integrity and prevent a downgrade of Indonesia’s equity classification.
How this story developed
- Oct 16 MSCI launches consultation to reclassify Indonesia as standalone market over governance concerns
- Oct 16 MSCI announced a consultation to consider reclassifying Indonesia as a standalone market.
- Oct 19 IDX announced enhanced shareholder‑disclosure rules that will flag affiliations for owners of 1 % stakes.
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