The Indonesia Stock Exchange (IDX) plans to remove stocks with highly concentrated ownership from its benchmark Jakarta Composite Index (JCI) to improve market integrity and credibility. The move aims to prevent a potential downgrade by MSCI Inc. from emerging-market to standalone-market status, following concerns over coordinated trading and opaque ownership. IDX CEO Jeffrey Hendrik confirmed the timeline will be announced soon.
Affected shares will remain tradable but will no longer influence the JCI. Analysts view the reform as positive, though it may cause short-term volatility. Henry Wibowo of Alphagate Capital called it a "positive structural reform." The policy follows MSCI’s warning about persistent market manipulation risks.
Regulators are acting to safeguard Indonesia’s international investment appeal.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing