Indonesia Stock Exchange Overhauls Shareholding Concentration Rules, Expanding Watchlist to 383 Stocks

JAKARTA, Investortrust.id — The Indonesia Stock Exchange (IDX) has overhauled its screening framework for tightly held equities, expanding its High Shareholding Concentration (HSC) watchlist to 383 listed firms after scrapping minimum market capitalization limits and price volatility triggers.

The methodology overhaul removes previous constraints that limited surveillance primarily to larger-cap equities, exposing all companies listed on the domestic exchange to regulatory scrutiny. Under the new screening regime, the number of flagged companies surged by 300 stocks compared to the prior composition.

Scrapping Market Cap Filters and Price Triggers

Speaking at a press conference in Jakarta on Tuesday, IDX President Director Jeffrey Hendrik stated that the HSC Committee resolved to disclose the updated screening framework to enhance market transparency. A central change involves eliminating the previous requirement that restricted screening solely to companies with a market capitalization exceeding Rp 5 trillion.

"The previous HSC methodology, which took into account a threshold of stocks with a market capitalization above Rp 5 trillion as the universe, is no longer used," Jeffrey said. "This means screening for HSC is now conducted across the entire market, covering all shares listed on the Indonesia Stock Exchange."

In addition to discarding the size threshold, the bourse dropped the price-impact ratio (PIR) criterion. Consequently, equities exhibiting extreme ownership concentration will be tagged proactively rather than waiting for anomalous trading activity or price swings to manifest. "Meaning, we do not wait until there is share price movement," Jeffrey added.

Under the simplified mechanism, a stock will be designated under the HSC classification if 10 or fewer shareholders hold an aggregate stake of 92.5% or more of the company's total issued capital.

"With this methodology, we will soon publish the latest HSC stock list, which will consist of 383 shares, representing an addition of 300 new stocks into the HSC category, equivalent to an additional 6.16% of the market capitalization of the Jakarta Composite Index," Jeffrey disclosed.

Exit Conditions and Free Float Enforcement

The bourse chief noted that while the HSC Committee will conduct periodic reviews, forward-looking evaluations will primarily concentrate on identifying newly concentrated counters rather than routinely clearing existing entrants.

To exit the surveillance list, listed issuers must substantiate that they have improved the dispersion of their equity among public investors. The bourse explicitly mandated that such redistributions must take place via bona fide transactions on the regular trading board rather than through negotiated off-market transfers.

"Meanwhile, to exit the HSC stock list, the listed company must demonstrate to the exchange that a better distribution of shares to the public has been achieved. And that distribution must be executed through transactions in the regular market," Jeffrey explained.

Concurrently, Indonesia's Self-Regulatory Organizations (SROs)—comprising the exchange, clearing houses, and depositories—will tighten monitoring over beneficial ownership and free float veracity by leveraging advanced surveillance technology. Jeffrey warned that regulators will penalize market participants and issuers that misrepresent shareholder disclosures.

"If inaccurate reports are discovered, we will naturally apply all applicable statutory provisions and regulations to impose sanctions on parties reporting untrue information to the public," Jeffrey concluded.