As an effort to develop the Indonesia Capital Market so that market activities always run in an orderly, fair and efficient manner, the Indonesia Stock Exchange (IDX) has announced a schedule for the Implementation of Free Float in Index Calculations on Monday (31/5). To date, there are 38 indices on the IDX, and which 9 (nine) indices already use the Free Float methodology. While other indices still use the 'Market Capitalization Weighting', in which the weight of the stock price index is calculated using all listed shares.
Previously, the change in the index calculation methodology from Market Capitalization Weighting to Free Float was applied to the LQ45 and IDX30 indices in 2019. While 7 (seven) other indices have implemented Free Float since inception, such as the IDX80, IDX High Dividend 20, IDX Value30, IDX Growth30, IDX Quality30, IDX ESG Leaders, and IDX MES BUMN 17 Indices.
The application of the Free Float methodology is intended, among others, to provide a better reflection of the actual market conditions, to reduce the burden of the Investment Manager in managing investment portfolios and encourage Listed Company to increase their Free Float shares portion in the market. The application of this methodology is also a common practice carried out by index service providers in the global stock exchanges.
IDX will evaluate and change the Index Calculation methodology from Market Capitalization Weighting to Capped Free Float Adjusted Market Capitalization Weighting in stages as follows:
|
No. |
Index |
Effective Date of Adjustment Phase 1 |
Weighted Limit (Cap) |
Evaluation Schedule |
|||
|
Major |
Minor |
Major |
Minor |
||||
|
1 |
SRI-KEHATI |
1 July 2021 |
15% |
May |
August |
November |
February |
|
2 |
INVESTOR33 |
1 July 2021 |
15% |
May |
August |
November |
February |
|
3 |
BISNIS-27 |
1 July 2021 |
15% |
April |
July |
October |
January |
|
4 |
Pefindo i-GRADE |
1 July 2021 |
20% |
June |
September |
December |
March |
|
5 |
PEFINDO25 |
2 August 2021 |
15% |
January |
April |
July |
October |
|
6 |
KOMPAS100 |
2 August 2021 |
9% |
January |
April |
July |
October |
|
7 |
JII |
2 August 2021 |
15% |
May |
August |
November |
February |
|
8 |
JII70 |
2 August 2021 |
9% |
May |
August |
November |
February |
|
9 |
INFOBANK15 |
2 August 2021 |
20% |
June |
September |
December |
March |
|
10 |
SMINFRA18 |
2 August 2021 |
15% |
April |
July |
October |
January |
|
11 |
MNC36 |
2 August 2021 |
15% |
April |
July |
October |
January |
|
12 |
IDXBUMN20 |
4 August 2021 |
15% |
January |
April |
July |
October |
|
13 |
IDXSMC-LIQ |
4 August 2021 |
9% |
January |
April |
July |
October |
|
14 |
ISSI |
1 October 2021 |
9% |
May |
August |
November |
February |
|
Minor |
Minor |
Minor |
Minor |
||||
|
15 |
IHSG |
1 October 2021 |
9% |
March |
June |
September |
December |
|
|
Major |
Minor |
Minor |
Minor |
|||
|
16 |
IDXENERGY |
1 October 2021 |
9% |
June |
September |
December |
March |
|
17 |
IDXBASIC |
1 October 2021 |
9% |
June |
September |
December |
March |
|
18 |
IDXINDUST |
1 October 2021 |
20% |
June |
September |
December |
March |
|
19 |
IDXNONCYC |
1 October 2021 |
9% |
June |
September |
December |
March |
|
20 |
IDXCYCLIC |
1 October 2021 |
9% |
June |
September |
December |
March |
|
21 |
IDXHEALTH |
1 October 2021 |
20% |
June |
September |
December |
March |
|
22 |
IDXFINANCE |
1 October 2021 |
9% |
June |
September |
December |
March |
|
23 |
IDXPROPERT |
1 October 2021 |
9% |
June |
September |
December |
March |
|
24 |
IDXTECHNO |
1 October 2021 |
25% |
June |
September |
December |
March |
|
25 |
IDXINFRA |
1 October 2021 |
9% |
June |
September |
December |
March |
|
26 |
IDXTRANS |
1 October 2021 |
15% |
June |
September |
December |
March |
|
27 |
MBX |
1 October 2021 |
9% |
May |
August |
November |
February |
|
28 |
DBX |
1 October 2021 |
9% |
May |
August |
November |
February |
|
|
Major |
Minor |
Major |
Minor |
|||
|
29 |
IDXSMC-COM |
1 November 2021 |
9% |
January |
April |
July |
October |
With this change, all indices on the IDX will apply the Capped Free Float Adjusted Market Capitalization Weighting methodology.
The complete schedule for Free Float implementation can be read in Table 3 Attachment to IDX Announcement No.: Peng-00148/BEI.POP/05-2021 regarding Implementation of Free Float in Index Calculations which can be officially accessed through the IDX Website at the link: http://bit.ly/PenerapanFreeFloatBEI
The above has herewith been brought to public attention.
