Regulation Watch · Business Licensing · Indonesia. OJK's official notice applies to public companies using the significant-market-volatility buyback framework. The IDX announcement changes the constituent-selection and review methodology for the Indonesia Stock Exchange Composite Index, or IHSG. The measures affect listed securities, issuers, shareholders and investors, funds and financial products that use the IHSG as a benchmark or reference. HSC exclusion does not delist an affected security or amend the issuer's company or operating licences.
OJK Extends Buybacks as IDX Tightens HSC Rules
OJK has extended share buybacks without RUPS approval through June 2027, while IDX will exclude High Shareholding Concentration shares from the IHSG from 2 November 2026 and apply immediate off-cycle adjustments.
- Published
- IDX issued Announcement Peng-00201/BEI.POP/10-2026 on 21 October 2026, and its official press release followed on 23 October 2026. OJK published Press Release SP 201/OJK/DPKU/X/2026 on 26 October 2026. These are official exchange and supervisory notices and do not identify a State Gazette promulgation date.
- Effective
- The revised IHSG methodology applies from 2 November 2026. OJK announced on 26 October 2026 that the RUPS-free buyback policy continues through June 2027; the notice does not state a more precise end date.
- Added to Watch
- 23 October 2026
- Updated
- 29 October 2026
Who is affected
Indonesian and foreign investors, investment managers, index funds and exchange traded funds, pension and insurance portfolios, securities companies, custodians, benchmark and data providers, listed PT PMA and PT PMDN companies, controlling and other shareholders, directors, commissioners, corporate secretaries, investor-relations teams and advisers monitoring free float and ownership concentration.
Practical impact
Public companies may continue using the POJK 13/2023 significant-market-volatility route to buy back shares without prior RUPS approval through June 2027. The flexibility does not remove prudential review, financial-capacity assessment, disclosure, minimum free-float, reporting or re-float duties under the applicable OJK framework. Separately, shares classified by IDX and KSEI as having High Shareholding Concentration, or HSC, will no longer be included in the IHSG while that classification applies. Regular reviews move from March, June, September and December to January, April, July and October, with results effective on the first exchange day of February, May, August and November. A share that enters or exits HSC status between regular reviews will be adjusted in the IHSG immediately.
IDX issued Announcement Peng-00201/BEI.POP/10-2026 on 21 October and set 2 November 2026 as the effective date. The change updates the methodology for selecting and reviewing securities in the IHSG, Indonesia's broad exchange composite index.
The central change is the treatment of High Shareholding Concentration. The former selection rule included all listed shares except those on the Acceleration Board. From 2 November, shares published by IDX as HSC are also excluded from the IHSG while that classification remains in force. The calculation method remains capped free-float-adjusted market capitalisation with a maximum 9 percent weight.
HSC status comes from the IDX and KSEI framework established by Joint Decision Kep-00047/BEI/03-2026 and KEP-0024/DIR/KSEI/0426. Under that framework, IDX and KSEI review concentrated ownership and IDX publishes the resulting HSC status. When a later review or written issuer confirmation shows that the concentration condition has ended, the exchange publishes a further notice.
The review calendar also changes. Regular IHSG evaluations move to January, April, July and October, and the results become effective on the first exchange day of February, May, August and November. The announcement additionally introduces an off-cycle mechanism: when a share enters or exits HSC status outside the regular timetable, the IHSG will be adjusted immediately.
OJK then published SP 201/OJK/DPKU/X/2026 on 26 October. It extends through June 2027 the policy allowing public companies to buy back shares without prior RUPS approval under the significant-market-volatility framework in POJK 13/2023. The notice does not give an exact last day in June.
The extension is procedural flexibility, not a general exemption. OJK expressly requires issuers to consider prudence and financial capacity, make the required disclosures, preserve minimum free float and transfer repurchased shares back to the market. POJK 29/2023 continues to govern buyback execution, reporting and the transfer of treasury shares.
The measure changes benchmark composition, not listing status. An HSC share remains listed and tradable unless a separate exchange action says otherwise. Investors should distinguish an IHSG exclusion from a suspension, board transfer or delisting, and should apply the investment mandate and risk controls governing their own portfolio.
Index-tracking and benchmark-aware portfolios should identify affected holdings, model the revised weights, confirm authorised execution steps and update review calendars before 2 November. Listed companies and shareholders should monitor official HSC publications and reconcile ownership records because later HSC changes can now affect the IHSG without waiting for the next quarterly review. Issuers considering the extended buyback route should separately complete board, disclosure, free-float, reporting and re-float controls before acting.
Required action
- Identify portfolios, mandates, performance reports, valuation models, covenants and investment products that track, reference or compare performance with the IHSG.
- Obtain the current official HSC status for each relevant listed holding and do not treat exclusion from the IHSG as a delisting, trading suspension or automatic investment prohibition.
- For passive or benchmark-aware portfolios, model constituent and weight changes before 2 November 2026 and approve any rebalance, liquidity and execution plan under the fund mandate and applicable OJK rules.
- Update systems and calendars for regular IHSG reviews in January, April, July and October and first-exchange-day implementation in February, May, August and November.
- Create an event-driven control for IDX announcements that add or remove a security from HSC status because off-cycle IHSG treatment can now apply immediately.
- Listed companies and significant shareholders should reconcile KSEI ownership records, public-float disclosures and investor-relations materials, and promptly investigate any unexpected HSC publication.
- A public company considering a buyback without RUPS approval should document the board's prudential and financial-capacity assessment, confirm the current OJK significant-market-volatility policy, prepare the required disclosure and reporting, and verify compliance with minimum free float before execution.
- Maintain a plan and calendar for transferring the repurchased shares back to the market under the applicable OJK re-float rules, and do not treat the June 2027 extension as a waiver of the POJK 29/2023 treasury-share requirements.
- Preserve the 21 October announcement, the applicable HSC notice and the calculation or investment decision record for audit, investor reporting and mandate-compliance purposes.