The Indonesia Stock Exchange (IDX) has begun excluding 80 stocks characterized by high shareholding concentration (HSC) from its benchmark index calculation. The move is part of broader efforts to improve market quality and governance, changing how the IDX Composite is composed without removing the affected securities from trading. The new approach places index eligibility and market participation on separate tracks: a stock can remain tradable while ceasing to contribute to the benchmark.
The excluded group includes PT Bayan Resources (BYAN) and PT Barito Renewable Energy (BREN). For those companies and the other stocks on the list, exclusion applies to index calculation only. They remain tradable on the exchange but no longer factor into the IDX Composite. That distinction defines the scope of the reform: trading continues, while benchmark treatment changes.
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On the first trading day, the IDX Composite was down 0.35 percent to 5,039.54 points. The index then rebounded by 0.95 percent during the second session. The two-session sequence moved from a decline to a rebound, providing the immediate numerical picture of the index following the change. The first session registered the drop, while the second brought the recovery.
” His explanation centered on how index weight is assigned after the 80 excluded stocks cease to contribute to the calculation.
According to IDX president director Jeffrey Hendrik, “The weight of the removed HSC stocks would be redistributed to other index constituents.” His explanation centered on how index weight is assigned after the 80 excluded stocks cease to contribute to the calculation. Under the arrangement described, the removed weight is directed to the remaining constituents, allowing the IDX Composite to incorporate the change in its index composition. The mechanism therefore operates within the index rather than through the removal of the stocks from trading.
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The IDX's decision forms part of broader efforts to improve market quality and governance. The policy addresses high shareholding concentration within index calculation while preserving the ability to trade excluded securities. In practical terms, the IDX is changing which stocks contribute to its benchmark and how their weight is handled, rather than shutting those companies out of the market. The stocks’ exclusion from index calculation and their continued tradability remain the central features of the approach.
The immediate numbers provide a clear starting point: 80 HSC stocks are excluded, the IDX Composite fell 0.35 percent to 5,039.54 points on the first trading day, and it rebounded by 0.95 percent during the second session. The affected stocks are still tradable, but they no longer factor into the IDX Composite calculation.
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