The Indonesia Stock Exchange (IDX) has responded to MSCI’s decision to remove several Indonesian stocks categorized under high shareholding concentration (HSC), or highly concentrated ownership. IDX Director of Trading and Exchange Member Regulation, Irvan Susandy, explained that stocks classified as HSC are typically controlled by a limited group of investors holding a dominant ownership stake. This classification is determined by a special committee involving the IDX and the Indonesian Central Securities Depository (KSEI).

Irvan stated that the purpose of the HSC classification is to enhance transparency for the public regarding ownership concentration in listed companies. He further explained that the process of identifying HSC stocks is conducted in stages. When a stock enters the initial indication phase, the IDX and KSEI will assess its shareholding structure.

Within the trigger factor process, stocks that meet certain criteria set by the HSC Committee will undergo further evaluation of their ownership structure. These trigger factors consider aspects such as price volatility, supervisory elements, liquidity, and other relevant indicators. Once identified as having HSC characteristics, the stock will be publicly announced by the IDX. The respective issuer is then given the opportunity to improve its ownership structure to exit the HSC category. If improvements are made, the IDX will announce that the stock is no longer classified as having concentrated ownership.

Irvan added that listed companies can improve their shareholding structure through measures such as refloating shares or conducting corporate actions. Currently, there are nine stocks categorized as HSC in the Indonesian capital market. These include PT Barito Renewables Energy Tbk (BREN) with a concentration level of 97.31%, PT Dian Swastatika Sentosa Tbk (DSSA) at 95.76%, PT Abadi Lestari Indonesia Tbk (RLCO) at 95.35%, and PT Rockfields Properti Indonesia (ROCK) at 99.85%.

Additionally, PT Panca Anugrah Wisesa Tbk (MGLV) has a concentration of 95.94%, PT Ifishdeco Tbk (IFSH) at 99.77%, PT Satria Mega Kencana Tbk (SOTS) at 98.35%, PT Samator Indo Gas Tbk (AGII) at 97.75%, and PT Lima Dua Lima Tiga Tbk (LUCY) at 95.47%.

On Tuesday (April 21), MSCI announced that it would maintain the suspension of the May 2026 rebalancing and remove Indonesian stocks categorized as HSC from its indices. MSCI is also continuing to evaluate the impact of capital market reforms on investment accessibility in Indonesia.

Furthermore, MSCI will use shareholder disclosure data above 1% to adjust free float estimates, although it will not incorporate new data sources until the review process is completed. This approach aims to limit index volatility and investment risks while allowing further evaluation of Indonesia’s capital market reforms.

In its official statement, MSCI emphasized that it will remove stocks identified by Indonesian authorities under the High Shareholding Concentration (HSC) framework.