A High Shareholding Concentration (HSC) announcement is a public notice from the Indonesia Stock Exchange (IDX) and the central depository, KSEI, that a listed company's shares are held by a limited number of shareholders. It is information, not a restriction: nothing we could find in the published sources stops a flagged stock from being traded, transferred, or pledged. What the designation changes is index treatment. HSC status keeps a stock out of the IDX80 universe, and so out of LQ45 and IDX30, which are drawn from it in turn, and FTSE Russell and MSCI both delete HSC securities — which removes index-tracking demand and bears on liquidity.
This note answers the title question from the published rules alone, as they stood on 25 September 2026, not from how any lender treats an HSC stock, which none of the sources read for this note describes. It is general information, not advice.
Key takeaways
- An announcement, not a sanction. Every determination announcement we read states that it "does not necessarily indicate any violation of the prevailing laws and regulations in the Capital Market".
- No transfer or pledge restriction in the published sources. The IDX–KSEI joint decree of 2 April 2026 provides only for review, determination, and publication.
- No threshold in the published documents. Each announcement gives only that company's own percentage.
- The consequences are index consequences. Since 4 May 2026 an HSC stock sits outside the IDX80 universe, and so LQ45 and IDX30, and FTSE Russell and MSCI delete HSC securities.
- There is a way off the list. A further announcement follows a completed re-review; one had been issued by 25 September 2026.
What is a High Shareholding Concentration (HSC) announcement on the IDX?
An HSC announcement is a three-sentence notice, signed by one director each of the IDX and KSEI and posted on the IDX website. It states that, as of a named date, a listed company's shares "are owned by a limited number of shareholders who aggregately control" a stated percentage of its scrip and scripless shares. The joint press release issued on 2 April 2026 by the Financial Services Authority (Otoritas Jasa Keuangan, OJK), the IDX, and KSEI defines HSC as "a public announcement regarding share ownership data of Listed Companies that is concentrated among a small number of shareholders", and lists it among four completed agenda items.
The legal basis is a Joint Decree of the Boards of Directors of PT Bursa Efek Indonesia and PT Kustodian Sentral Efek Indonesia, No. Kep-00047/BEI/03-2026 and KEP-0024/DIR/KSEI/0426, issued and effective on 2 April 2026. Its five points cover review, determination, publication on the Exchange's website, a further announcement after re-review, and the effective date. Its recitals cite the effect of concentrated ownership on available shares, liquidity, and price fluctuation.
The decree states no numeric threshold. The review follows "the mechanism which has been agreed upon in writing by the Stock Exchange and KSEI", which is not set out in the decree or in any document we could find. Each announcement gives only the percentage held in aggregate in that company; the percentages quoted in press coverage as a trigger appear in neither document.
Is an HSC announcement a sanction, or a finding that a rule was breached?
An HSC announcement is not a sanction and not a finding that a rule was breached. Every determination announcement we read carries the same sentence: "This announcement does not necessarily indicate any violation of the prevailing laws and regulations in the Capital Market." The joint decree contains no sanction, no suspension, and no obligation on shareholders, and the joint press release presents the measure as one "to enhance information transparency and investor protection".
The sentence is neutral in both directions: it neither finds a violation nor rules one out. The table sets out what the published sources say.
| Question | What the published sources say | Source and date |
|---|---|---|
| Is it a sanction or a finding of breach? | No — it "does not necessarily indicate any violation" of capital-market laws and regulations | Text of the IDX–KSEI HSC announcements read, April to September 2026 |
| Does it suspend or restrict trading? | Not addressed; the decree provides for review, determination, and publication only | IDX–KSEI joint decree, 2 April 2026 |
| Does it restrict transfer or pledge of the shares? | No restriction that we could find in the published sources | Joint decree; announcement text; HSC passage of the joint press release, 2 April 2026 |
| Does it change ownership or pledge reporting duties? | Not addressed; the decree imposes no reporting duty on shareholders and does not mention OJK's reporting rules | IDX–KSEI joint decree, 2 April 2026 |
| Does it affect index membership? | Yes — outside the IDX80 universe, and so LQ45 and IDX30; deleted by FTSE Russell and MSCI | IDX Announcements No. Peng-00065 and Peng-00067/BEI.POP/04-2026, 21 and 24 April 2026; FTSE Russell notices, 13 May and 18 August 2026; MSCI announcements, 20 April and 6 July 2026 |
| Does it change the free-float requirement? | No — the 15% minimum is a separate continuing listing requirement | IDX Regulation No. I-A as amended by Kep-00045/BEI/03-2026, 31 March 2026 |
Does any rule stop HSC-flagged shares from being transferred or pledged?
No rule that we could find in the published sources stops HSC-flagged shares from being traded, transferred, or pledged. Neither the joint decree, nor the announcement, nor the passage of the joint press release that deals with HSC attaches any trading, transfer, pledge, suspension, or sanction consequence to an HSC announcement.
That is a statement of absence, and about the HSC framework only. A flagged stock may be restricted for other reasons — a post-listing lock-up, a suspension, a sectoral foreign-ownership cap — under rules that apply with or without the announcement, and OJK's reporting rules for shareholders, which the joint decree does not mention, apply as before. Nor does the absence of a prohibition mean that a particular pledge can be taken, perfected, and relied on, or that any counterparty will accept the stock as collateral: the first is a question for the holder's own Indonesian counsel, the second a commercial one that none of those sources addresses.
What have FTSE Russell, MSCI, and the IDX's own indices done with HSC stocks?
The IDX, FTSE Russell, and MSCI have each written HSC status into their index treatment: the IDX keeps HSC stocks out of the universe from which IDX80, LQ45, and IDX30 are built, and FTSE Russell and MSCI delete them.
The IDX's own indices. By Announcement No. Peng-00065/BEI.POP/04-2026 of 21 April 2026, the Exchange added to the IDX80 universe (IDX80's constituents are the universe for LQ45, and LQ45's for IDX30) the condition "Tidak masuk dalam High Shareholding Concentration (HSC)", not included in HSC, and raised the existing 10% minimum free-float ratio to 10% or the level required under Regulation No. I-A, whichever is higher. The evaluation result, Announcement No. Peng-00067/BEI.POP/04-2026 of 24 April 2026, gives the first effective period as 4 May to 31 July 2026.
FTSE Russell. Under FTSE Russell's Free Float Restrictions ground rules (v3.5, July 2026), a company subject to an unrescinded high shareholding concentration warning notice from a regulatory authority, issued within the two years before the free-float cut-off date, is ineligible for index inclusion, and an existing constituent that becomes subject to such a notice before that cut-off date is deleted at the forthcoming review. A notice of 13 May 2026 set the deletion of "the affected security" at "the price of zero", effective from the open on Monday 22 June 2026. A notice of 18 August 2026 set the deletion of the affected HSC securities "at the market price" at the September 2026 review, effective from the open on Monday 21 September 2026, and continued to defer free-float increases and new additions of Indonesian securities "until at least the December 2026 index review".
MSCI. MSCI's announcement of 20 April 2026 said that at its May 2026 index review it would delete securities identified by the Indonesian authorities under the new HSC framework. Its announcement of 6 July 2026 continued that treatment for the August 2026 review and for corporate events until further notice, and said MSCI would communicate further before its November 2026 review. That review and FTSE Russell's in December are scheduled; nothing here predicts their outcome.
Deletion from an index removes the demand of the funds that track it, and for a stock whose tradable float is already narrow that bears directly on liquidity — the first thing looked at when any counter is assessed as collateral (see which Indonesian stocks qualify for a stock loan, which says that a line where a few holders own almost everything does not clear the liquidity test) and a factor for as long as a position is pledged (see margin calls, top-ups, and default on an IDX stock loan).
Does pledging your own shares cause or change a company's HSC status?
Pledging shares does not by itself cause or change a company's HSC status, as a matter of general principle. HSC is determined from share-ownership data, and a pledge (gadai, under Articles 1150 to 1160 of the Indonesian Civil Code) is security over shares that stay in the pledgor's ownership.
A transfer is different: shares that pass to a buyer on enforcement, or under a structure that transfers title, change who owns what. And because the HSC methodology is unpublished, its treatment of pledged positions, positions under a repo, or nominee-held positions cannot be confirmed from the published sources — a question for Indonesian counsel.
Where are HSC announcements published, and how often does the list change?
HSC announcements are published on the announcements page of the IDX website (idx.co.id/id/berita/pengumuman/), each titled "Pengumuman Kepemilikan Saham Terkonsentrasi Tinggi", usually followed by the company's name. The decree fixes no calendar: it says only that determinations are made "in certain period of time" and that re-review follows a "periodic review". IDX's president director was reported on 14 July 2026 as saying that an added criterion, for stocks above Rp10 trillion in market capitalisation, would be evaluated every three months; that is a reported statement, not a published rule.
Announcements have come in batches and singly: the first nine dated 2 April 2026, a batch of 37 dated 14 July 2026, and smaller numbers in every month from May to September. By our count of the announcements listed on the IDX website, at least 60 companies had been announced and one removed between 2 April and 25 September 2026, leaving at least 59; one serial number in the sequence could not be located in the listing.
How does a listed company stop appearing in HSC announcements?
A listed company leaves the HSC list only through a further announcement by the IDX and KSEI. Under point 4 of the joint decree, they publish one when a company's shares are no longer in a highly concentrated ownership condition, no later than five exchange days after the re-review is completed, on the basis of their periodic review, written confirmation from the listed company, or both. If the condition persists, nothing further is published, so a company stays on the list by default.
The procedure is published; a numeric exit test is not. One such announcement had been issued by 25 September 2026: an "Announcement Resolving of High Shareholding Concentration" (Pengumuman Berakhirnya Kepemilikan Saham Terkonsentrasi Tinggi), No. Peng-RSC-00001/BEI.WAS/07-2026, dated 2 July 2026, stating on ownership data as of 29 June 2026 that the company "is no longer in a condition of high concentration of share ownership".
Leaving the IDX list is not the same as returning to an index. Under FTSE Russell's rule, a company whose warning notice has been rescinded is treated as a new issue for index eligibility. None of the FTSE Russell documents read for this note says how an IDX–KSEI announcement that HSC status has ended will be treated, and new additions of Indonesian securities are in any case deferred until at least the December 2026 review.
None of the sources read for this note states what change in ownership ends the condition: broader ownership is the direction the decree's recitals point in, but whether a particular sale or placement would alter a determination cannot be confirmed from them. Where a controlling shareholder does sell part of a block privately, the trade is typically crossed on the Negotiated Market; the choice between selling a block and borrowing against it is covered in block trades vs stock loans.
How does the 15% free-float requirement relate to HSC status?
HSC status and the 15% free-float minimum are separate instruments that point the same way. HSC is an announcement under the IDX–KSEI joint decree, whose recital (a) gives the aim as ensuring that free-float shares reflect the shares available and can be traded effectively. The free-float minimum is a continuing listing requirement in IDX Regulation No. I-A, the listing rule for the Main and Development Boards, as amended by Decree of the IDX Board of Directors No. Kep-00045/BEI/03-2026, issued and effective on 31 March 2026, which raised the minimum from 7.5% to 15% of listed shares, measured from one year after listing.
Compliance is staged by market capitalisation and free float as at 31 March 2026, with scheduled dates of 31 March 2027, 2028, and 2029 for different tiers; the decree allows the Exchange to set a different period with OJK's approval or on its order. Neither document ties one test to the other, and a company can meet one and not the other.
What does an HSC announcement mean for a shareholder? The practical takeaway
An HSC announcement changes what the market knows about a company and how the indices treat its stock; on the published sources, it does not change what a holder may do with the shares. Three checks can be made before speaking to an arranger or to counsel.
- Is the stock on the list today? Read the IDX announcements page as at the day, including any announcement that a company's HSC status has ended.
- What index membership has it lost or kept? The IDX indices, FTSE Russell, and MSCI each apply their own rule on their own timetable.
- What does the traded liquidity look like? Average daily trading value, free float, and the size of the block against both are among the inputs assessed for any counter, as set out in how much you can borrow against Indonesian shares and defined in the glossary.
Whether an HSC announcement, a pledge, or an index deletion carries any consequence for a particular holding — under the listing rules, the reporting rules, or existing financing documents — is a question for your own Indonesian legal counsel. We act as arranger and introducer; we do not make regulatory filings and we do not provide legal advice. See our stock loans overview and our FAQ for how a concentrated position is worked through.
This article is a general description of Indonesia's High Shareholding Concentration framework as at 25 September 2026 and is not legal, tax, or investment advice. It names no issuer and expresses no view on any company that has been the subject of an announcement. The instruments and index-provider notices described apply as they stand at the relevant time and to the specific facts, and they can change. Obtain advice from qualified Indonesian counsel before acting. It follows our editorial standards; see also our disclosures.
