Gotrade News - Indonesia Stock Exchange has officially barred stocks with high ownership concentration from its flagship indices IDX30, LQ45, and IDX80. The new rules take effect on the first trading day of May 2026 following the April major evaluation.
The policy directly targets companies where a small group of shareholders controls more than 95% of outstanding shares. Several large-cap names that currently sit in the blue-chip indices now face removal.
Key Takeaways:
- Stocks classified as High Shareholding Concentration are now excluded from all three major IDX indices
- BREN and DSSA, two of Indonesia's largest conglomerates, face removal from LQ45 and IDX80
- MSCI has also announced plans to remove HSC-classified Indonesian stocks from its global indices
According to the exchange's announcement on Monday (21/04), the HSC classification applies to stocks where ownership exceeds 95% aggregate control. This criterion now serves as the primary filter for index constituent selection.
The two biggest names affected are PT Barito Renewables Energy, ticker BREN, and PT Dian Swastatika Sentosa, ticker DSSA. Both are currently listed as constituents of the LQ45 and IDX80 indices.
BREN belongs to billionaire Prajogo Pangestu and operates in the renewable energy sector. DSSA is affiliated with Franky Oesman Widjaja and spans energy and technology businesses.
Beyond these two, the exchange identified nine companies meeting HSC criteria in total. The list includes ROCK, IFSH, SOTS, AGII, MGLV, LUCY, and RLCO.
New IDX80 Eligibility Rules
IDX80 constituents must now be listed for at least six months and rank among the top 150 by regular market transaction value. The measurement period covers the preceding 12 months of trading activity.
The minimum free float ratio has been set at 10% or as required by the latest Regulation I-A. Previously, the exchange demanded continuous daily trading with zero suspension days.
Under the updated framework, stocks are allowed a maximum of one non-trading day within a six-month window. This replaces the stricter legacy requirement of uninterrupted daily activity.
Impact on Passive Investors
Stockbit Sekuritas warned that removing stocks from these indices could trigger outflows from passive index-tracking investors. Portfolio adjustments happen automatically when index constituents change.
MSCI has also announced it will exclude HSC-classified securities from its global indices covering Indonesia. Both domestic and international regulators are now aligned on addressing concentrated ownership.
The policy aims to improve index quality so the benchmarks better reflect actual market liquidity. Stocks with extreme ownership concentration are seen as poor representations of tradeable float.
The April 2026 major evaluation is a critical moment for investors holding affected stocks. Portfolio adjustments should be considered before the new index composition takes effect in May 2026.
Sources:
- Kompas Money, BEI Ubah Kriteria Indeks IDX30, LQ45, dan IDX80, 2026.
- Katadata, BEI Evaluasi LQ45, IDX30, IDX80, Saham BREN dan DSSA Bakal Didepak dari Indeks, 2026.
- IDX Channel, BEI Ubah Kriteria Indeks IDX30, LQ45, dan IDX80, Saham HSC Siap Didepak, 2026.
