Gotrade News - The Indonesia Stock Exchange has revised its evaluation criteria for the IDX30, LQ45, and IDX80 indices effective May 4, 2026. Stocks classified as High Shareholding Concentration or HSC will be automatically excluded from all three benchmark indices.
The changes were announced in notice Peng-00065/BEI.POP/04-2026 on Tuesday (22/04). BEI introduced three new criteria for determining index constituent stocks.
Key Takeaways:
- BREN and DSSA face removal from LQ45 and IDX80 due to HSC classification
- BEI added three new criteria including minimum 10% free float and HSC stock exclusion
- Changes take effect on the first trading day of May 2026
The three new criteria require a minimum 10% free float ratio, no more than one non-trading day in six months, and no HSC classification. BEI noted that the primary selection criteria for constituents remain unchanged.
BREN, owned by Prajogo Pangestu, and DSSA, affiliated with Franky Oesman Widjaja, are set for removal from the indices. Both appear on the HSC list jointly announced by BEI and KSEI.
Beyond BREN and DSSA, seven additional HSC stocks are also blocked from index entry. These include ROCK, IFSH, SOTS, AGII, MGLV, LUCY, and RLCO.
The market impact was immediate on Wednesday (22/04) as DSSA plunged 10.79% to the 2,480 level. BREN also dropped 7.53% to 5,525.
Stockbit Sekuritas assessed that removing BREN and DSSA could trigger investor outflows. Stocks leaving benchmark indices typically face portfolio rebalancing pressure from fund managers.
MSCI had previously committed to removing securities identified as HSC by Indonesian authorities. The dual pressure from BEI and MSCI amplifies the risk of further correction.
BEI stated the changes aim to strengthen the indices as credible market indicators. The move also supports the development of index-based investment products such as index funds and ETFs.
HSC stocks are identified based on concentrated ownership among a small number of investors. BEI and KSEI routinely publish the HSC list to improve public transparency.
