IDX intensifies global investor outreach amid reforms

Jakarta (ANTARA) - The Indonesia Stock Exchange (IDX) has intensified communication with global investors over the past two weeks to outline capital market reforms and address key concerns raised by international index providers, including MSCI.

"In the last two and a half weeks we have communicated with many global investors," IDX President Director Jeffrey Hendrik told a press conference in Jakarta on Tuesday (November 10).

Jeffrey explained that the corrective actions implemented focus on enhancing market transparency, bolstering liquidity, and raising the effectiveness of capital market supervision.

However, IDX leadership underscored that these sweeping reforms are fundamental for ensuring the long-term sustainability of the national capital market, rather than being mere tactical adjustments to satisfy external index provider criteria.

Consequently, Jeffrey affirmed that the IDX will consistently pursue its reform agenda regardless of upcoming MSCI evaluation results.

"This is indeed to answer the concerns of global index providers. However, it is not solely for that," Jeffrey confirmed.

As part of its latest initiatives, the exchange has overhauled its methodology for identifying shares with High Shareholding Concentration (HSC).

Under the updated framework, the HSC screening process is applied universally to all listed shares, eliminating previous prerequisites such as a Rp5 trillion (approximately US$275.7 million) market capitalization threshold or specific price-impact ratio indicators.

The expanded screening has added 300 stocks to the HSC category, bringing the total to 383 shares.

These equities account for approximately 6.16 percent of the total market capitalization and will be excluded from the calculation of the Jakarta Composite Index (JCI).

By comparison, the 83 shares previously included under the legacy HSC list accounted for roughly 18 percent of the index's market capitalization.

To reinforce credibility and accountability, the IDX has also restructured the HSC Committee, trimming its membership from nine to seven individuals.

The revamped committee now comprises three representatives from Self-Regulatory Organizations (SROs) and four independent members—a move designed to elevate corporate governance standards within Indonesia's financial ecosystem.

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Translator: Imamatul Silfia, Yashinta Difa
Editor: Rahmad Nasution
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