Flooring Guide by Cinvex – , JAKARTA – The Indonesia Stock Exchange (IDX) firmly believes that ongoing capital market transparency reforms will significantly contribute to market deepening. Consequently, the short-term decline in the Composite Stock Price Index (IHSG) presents an opportune moment for accumulation.
The nation’s capital market authorities have actively implemented four key reform initiatives. Among these is the crucial unveiling of data on concentrated stock lists, also known as High Shareholder Concentration (HSC). This particular initiative is a cornerstone of the broader effort to foster a more transparent and credible capital market environment.
The IDX acknowledges that this transitional phase may entail short-term consequences, specifically downward selling pressure in the stock market. This pressure is largely triggered by the departure of foreign funds, stemming from the risk of a potential reduction in the weight of Indonesian stocks within global index providers, such as MSCI.
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Indeed, the Composite Stock Price Index (IHSG) concluded trading on Monday, April 6, 2026, with a 0.53% correction, settling at 6,989. This level reflects a substantial 19.17% correction year-to-date (YtD). This downturn continues the composite index’s weakening trend over the past week, from March 30 to April 2, 2026, during which it fell by 0.99%.
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Jeffrey Hendrik, Acting President Director of the IDX, asserted that the collaborative efforts between the IDX and the Financial Services Authority (OJK) are unequivocally aimed at securing the long-term prosperity of the nation’s capital market.
“We are convinced that in the long run, Indonesia’s weighting in global index providers will increase. This will be driven by enhanced transparency, a deeper market, and significantly improved governance moving forward. We are also confident that, over the long term, Indonesia’s weight will be considerably higher than it is today,” Jeffrey stated during an interview at the IDX Building in Jakarta on Monday, April 6, 2026.
: OJK Reveals Impact of HSC Concentrated Stocks: Selling Pressure to Risk of Foreign Outflow
The exchange observes that during this current transitional period, the robust capacity of domestic investors is proving sufficient to prevent the IHSG from falling into a deeper decline. In fact, Jeffrey suggested that the short-term correction currently observed could be strategically utilized by local investors as a valuable opportunity.
“The essence of investing in the capital market is long-term commitment. If we firmly believe that the long-term potential is exceptionally strong, then a short-term dip is, by nature, an opportunity,” he emphasized.
Jeffrey drew parallels to historical market events over the past 20-25 years, citing numerous instances of IHSG downturns during economic crises, such as the COVID-19 pandemic. Nevertheless, the market invariably recovered, with the IHSG even repeatedly breaking new all-time highs (ATH) throughout 2025.
While acknowledging that short-term corrections present long-term opportunities for domestic investors, Jeffrey urged them to maintain a rational approach. He advised meticulous attention to the fundamental strength of issuers and the implementation of investment strategies aligned with individual risk profiles.
Addressing concerns regarding the potential reduction of Indonesia’s stock index weight in MSCI, it’s worth noting that the implementation of HSC on the Hong Kong exchange led to the delisting of constituents from global indices for 12 months for issuers with over 50% concentrated share ownership.
In Indonesia’s context, Jeffrey clarified that any such decision concerning index constituents remains the absolute prerogative of MSCI. The IDX’s role, he explained, is to provide a framework for issuers listed under HSC to implement distribution improvements, thereby enabling their removal from the list.
“Whether concentrated shares become a variable in MSCI’s calculation for removing constituent stocks is a question that must be directed to the global index providers. Our function as a regulator is to disclose this information to the public to ensure greater transparency,” he stated.
This commitment to transparency is widely believed to significantly enhance Indonesia’s capital market appeal on the global stage in the long run. Jeffrey remains optimistic that following this transitional phase, global investors will re-enter Indonesia. As of April 2, 2026, foreign net selling in the Indonesian stock market has reached Rp33.83 trillion year-to-date (YtD).
“For the long term, we are highly confident that our market fundamentals will be significantly stronger with a more transparent and deeper market. This will lead to increased participation from global investors, our domestic institutional investors, and our retail investors alike,” he concluded.