The Indonesia Stock Exchange (IDX) plans to investigate suspected coordinated trading and freeze investor accounts from November as MSCI considers a move for its Indonesia indexes to a standalone category.
IDX President Director Jeffrey Hendrik said Monday that enforcement would focus on investor accounts suspected of violations. The exchange also plans to add Indonesian academics and F. Chapman Taylor, whom it identified as a representative of foreign investors, to the committee that identifies shares with High Shareholding Concentration (HSC).
The IDX's Oct. 22 press-release listing includes a notice revising evaluation criteria for the IDX Composite. Reuters reported that shares on the HSC list would no longer be included in the index from Nov. 2.
Exchange statistics recorded an 11.57% drop in the IDX Composite at the Oct. 16 close, followed by a 3.64% decline at the next trading session's close on Oct. 19. On Oct. 16, Indonesia's Financial Services Authority (OJK) announced sanctions in cases involving PT Dian Swastatika Sentosa Tbk (DSSA), PT Barito Renewables Energy Tbk (BREN) and PT Petrindo Jaya Kreasi Tbk (CUAN).
OJK said it fined PT SMT 1.5 trillion rupiah in the DSSA share-trading case, AH Ltd 500 billion rupiah in the BREN IPO case and TC Pte Ltd 100 billion rupiah in the CUAN IPO case. The fines were imposed on those parties, not on the three listed companies.
MSCI's Oct. 15 proposal followed institutional investors' concerns about opaque shareholding and suspected coordinated trading. MSCI said investors wanted reforms applied consistently and evidence that they had produced a material, lasting effect across the market. The proposed standalone category for MSCI's Indonesia indexes would place them outside the provider's emerging-market group.
In June, MSCI said insufficient progress by its November review could lead to a consultation on moving Indonesia to frontier-market status. Its October proposal instead put standalone status under review. Feedback is open through April 30, 2027, and MSCI said it expects to announce a final decision by June 30, 2027. The provider also said its pause on certain changes to Indonesian indexes would remain until further notice.
