Flooring Guide by Cinvex – , JAKARTA — The Indonesia Stock Exchange (IDX) is set to implement significant adjustments to the evaluation criteria for several of its key indices, including the IDX30, LQ45, and IDX80. These changes will take effect from the first trading day of May 2026, marking a pivotal shift in how leading Indonesian stocks are assessed.
A central element of these adjustments is the introduction of High Shareholding Concentration (HSC) as a new selection criterion. This means that stocks with a highly concentrated ownership structure could potentially be excluded from these benchmark indices. This forward-looking measure aims to enhance the overall quality and integrity of the indices.
The new criteria will first be applied during the major evaluation in April 2026, preceding their official implementation in May 2026. The IDX had previously announced these changes through Official Announcement No. Peng-00058/BEI.POP/03-2024, which detailed the index evaluation criteria adjustments. Furthermore, Announcement No. Peng-00210/BEI.POP/10-2024 provided an extension for fulfilling the free float ratio, underscoring the exchange’s commitment to robust market standards.
According to Pande Made Kusuma Ari A., Head of IDX’s Trading Regulation and Operations Division, these modifications are designed to ensure that the indices more accurately reflect current market conditions and dynamics. “These adjustments are made considering the need for indices that better represent market dynamics,” Pande stated in an official release on Wednesday, April 22, 2026.
Under the updated framework, the IDX explicitly states that stocks identified with high shareholding concentration will no longer meet the selection criteria for its indices. This signifies that companies with overly concentrated ownership structures risk being removed from the esteemed IDX30, LQ45, and IDX80 indices. In a complementary move, the IDX is also introducing a requirement for stocks to meet a minimum free float ratio, aligning with the latest regulations, an initiative aimed at further boosting the quality and liquidity of constituent stocks.
Conversely, the IDX is introducing a degree of relaxation concerning liquidity requirements. Under the new rules, a stock may still be considered for selection even if it has not been transacted for a maximum of one day within the last six months. This represents a notable change from previous provisions that mandated daily transactions, offering greater flexibility while maintaining sufficient trading activity.
Furthermore, the calculation reference for free float will now adhere to Regulation No. I-A as of March 31, 2026, along with the latest IDX Circular Letter. This updated methodology replaces the provisions that have been in use since 2021, ensuring that free float calculations are based on the most current and relevant standards.
The IDX believes these comprehensive adjustments will significantly strengthen the quality of its indices, making them even more reliable benchmarks for investors. By implementing these changes, the exchange aims to ensure that index constituents not only possess adequate liquidity but also exhibit a healthier and more diversified ownership structure, fostering a more robust and transparent market environment.
______
Disclaimer: This news article is not intended to solicit the buying or selling of stocks. Investment decisions are solely at the discretion of the reader. Bisnis.com is not responsible for any losses or gains arising from the reader’s investment decisions.