Indonesia’s Jakarta Composite Index rose 5.65% Tuesday to 5,278.89 after two sessions of losses, as the exchange plans a change that would remove 80 shares from its calculation.
The Indonesia Stock Exchange (IDX) would exclude price changes in shares designated under its High Shareholding Concentration (HSC) framework. IDX President Director Jeffrey Hendrik said the shares represented about 18% of the index’s weighting as of Oct. 19. They would remain listed and available for trading, and the exchange has not set an implementation date. Hendrik said the change is intended to give investors a more representative measure of market movements, as outlined in earlier coverage of the HSC proposal.
Before Tuesday’s close, the JCI lost 3.64% on Oct. 19, following an 11.57% drop on Oct. 16, Investing.com’s historical data show.
The IDX plan comes as MSCI consults on reclassifying the MSCI Indonesia Indexes from emerging-market to standalone-market status. MSCI said market participants had raised concerns about ownership that is difficult to assess and suspected coordinated trading. It also said market participants had not seen consistent progress from the reforms announced in Indonesia.
MSCI raised possible frontier-market treatment in its June review. In October, it proposed standalone status after feedback indicated that frontier classification would not adequately reflect participants’ concerns. The proposal has no stated effective date.
MSCI will accept feedback through April 30, 2027, and announce its decision on or before June 30, 2027.
