JAKARTA – The Indonesia Stock Exchange (BEI) has unveiled a list of stocks exhibiting high shareholding concentration (HSC), a move aimed at enhancing transparency within the capital market. On Thursday (2/4/2026), the BEI identified at least nine prominent stocks, including BREN, DSSA, AGII, and RLCO—the latter having just debuted on the exchange late last year—as possessing ownership structures deemed dominant under the BEI’s methodology. While this list is not static and may be updated should the respective companies undergo evaluation, it raises an important question: what exactly constitutes High Shareholding Concentration (HSC)?
This initiative by the BEI and the Financial Services Authority (OJK) is a pivotal step in reforming Indonesia’s capital market, especially after the turbulence caused by the freezing of domestic stock rebalancing in the MSCI index and the potential risk of Indonesia’s downgrade to a frontier market. The release of HSC data serves as a manifestation of these improved transparency efforts, adopted by the BEI from a similar policy implemented by the Hong Kong Stock Exchange. Fundamentally, this policy aims to inform the public when the ownership of an issuer’s shares is heavily concentrated among a specific group of parties.
Jeffrey Hendrik, the Acting President Director of BEI, explained that the primary objective behind publishing this list is to provide crucial guidance to both global and domestic investors, aiding them in making informed investment decisions. “This announcement is intended to increase transparency for investors in making investment decisions,” Jeffrey stated at the Indonesia Stock Exchange Building on Thursday (2/4/2026). Broadly, HSC denotes a scenario where a substantial portion of a stock or issuer’s ownership is held by a select few shareholders. For instance, in the case of PT Dian Swastatika Sentosa Tbk. (DSSA), the BEI highlighted that certain shareholders control an astounding 95.76% of DSSA’s shares. This means that out of 1.57 billion shares held by the public (both scrip and non-scrip), a staggering 1.50 billion shares are owned by a concentrated group of specific DSSA shareholders.
Previously, the OJK affirmed that the publication of this list is designed to increase transparency regarding hidden affiliations that might obscure the true picture behind seemingly large “free float” figures of issuers. Through this list, the OJK clarified that the public can discern whether the shares they hold are genuinely dispersed among a wide range of investors or effectively locked up by parties affiliated with the controlling entity. In essence, if an issuer reports an HSC of 90% out of a total of 1,000 scrip and non-scrip shares listed on the BEI, it implies that only 100 shares are truly circulating in the public domain and not confined to affiliates or specific entities. “If the public isn’t aware, it might seem as if the free float is substantial. After this list is published, we hope it becomes clear that, for such stocks, the ownership is, for example, highly concentrated, or there is a significant potential for affiliation among the owners,” said Hasan Fawzi, Chief Executive of Capital Market, Derivative Financial, and Carbon Exchange Supervision at the OJK, during a meeting in Jakarta on Tuesday (3/3/2026).
Equity Analysts Ryan Winipta and Reggie Parengkuan from Indo Premier Sekuritas (IPOT) observe that, based on practices in the Hong Kong exchange, stocks where ownership concentration by a specific group exceeds 50% of the total free float typically fall under regulatory scrutiny. The designation of an issuer on the high shareholding concentration (HSC) list is determined on a case-by-case basis, taking into account the ownership structure, price movement dynamics, and corporate actions such as private placements. In their research publication, both analysts underscored that this list does not constitute a trading suspension or an accusation of market manipulation. Instead, it serves as a critical warning signal to investors about the inherent risks associated with high ownership concentration. “This list is not a form of trading suspension or an accusation of market manipulation, but rather a warning to investors about the risk of stock ownership concentration,” they articulated in their research.
However, they cautioned that the presence of an HSC list could have significant repercussions for an issuer’s standing in global indices. Referencing the methodology adopted in Hong Kong, MSCI may potentially delist stocks that fall into this category from its constituent lists. Should a similar approach be implemented in Indonesia, stocks on the HSC list could be removed from the MSCI Indonesia index and might not be eligible for re-inclusion for at least 12 months. Furthermore, new issuers would only be reconsidered for inclusion in such global indices after providing disclosures demonstrating an increase in their free float by a minimum of 15%. Even if an issuer provides clarification on its beneficial ownership structure, it does not automatically guarantee removal from the HSC list. Therefore, the strategic actions taken by the Indonesia Stock Exchange (BEI) are anticipated to alleviate concerns among global investment managers, particularly regarding the challenges in replicating portfolios with illiquid stocks in the regular market.
Crucially, as HSC is merely an effort by the BEI to provide information to investors for their investment decisions, regulators have not imposed any sanctions on issuers included in this list. Jeffrey Hendrik clarified that a stock’s inclusion in the HSC list does not inherently signify a violation of capital market regulations. This status is purely an informational provision for investors concerning an issuer’s highly concentrated ownership structure. He noted that stocks on the list do not necessarily breach the latest free float provisions. “So, there are no sanctions for stocks included in the shareholders concentration list,” he told reporters at the BEI on Tuesday (3/3/2026). The BEI has also established an evaluation mechanism. Listed companies on the list can undertake corrective measures to enhance their investment attractiveness or “investability.” “If, based on the latest assessment, the high concentration has been resolved, the BEI, along with KSEI (Indonesia Central Securities Depository), will issue a closing announcement regarding that status,” Jeffrey concluded.