Indonesia’s Stock Exchange to Drop High-Concentration Stocks from Key Index

Indonesia’s stock exchange plans to remove stocks with high ownership concentration from its key index. The move aims to improve the index’s reliability as a market benchmark. High ownership concentration means a small number of investors hold a large share of a company’s stock. This can make prices volatile and reduce the number of shares available for public trading, or free float. Under the plan, stocks that exceed set concentration limits will be excluded from the key index. The exchange has not yet announced the exact thresholds or the timeline for the change. The decision follows concerns that concentrated ownership can distort index performance and mislead investors who use the index to track the market.