Jakarta. Jakarta Composite Index (JCI) extended losses on Monday as Indonesia Stock Exchange (IDX) ownership transparency reforms sparked concerns over potential MSCI index adjustments, while a weaker rupiah and higher oil prices further dampened sentiment.

The benchmark index fell 25 points, or 0.35%, to 7,001, before sliding further by as much as 1.16% within the first 20 minutes of trading.

In the opening minute, trading volume reached 1.25 billion shares with turnover of Rp 466.3 billion ($27.4 million) across more than 95,000 transactions. Decliners outnumbered gainers, with 355 stocks falling, 150 rising, and 185 unchanged.

Equity analyst at Indo Premier Sekuritas (IPOT), David Kurniawan, said the JCI will face pressure this week from two key factors: the rupiah exchange rate and global oil prices.

“Indonesia’s economy is currently facing a serious test due to the combination of surging global oil prices and a sharp depreciation of the rupiah,” David said in a research note on Monday.

He added that if crude oil prices remain above $100 per barrel, the government’s energy subsidy burden in the state budget would rise significantly, potentially breaching the safe fiscal deficit limit.

“This pressure is compounded by the rupiah, which briefly weakened past Rp 17,000 per US dollar, automatically increasing raw material import costs and triggering higher domestic inflation,” he said.

Energy markets were closed on Friday (US time) after sharp gains the previous day on fears that the Iran conflict could drag on longer than expected. US benchmark crude jumped 11.4% to $111.54 per barrel on Thursday, while Brent crude rose 7.8% to $109.03 per barrel.

US President Donald Trump said late Wednesday that the United States would continue attacking Iran, offering no clear timeline for ending the conflict.

David expects the JCI to remain under pressure this week, with support at 6,700 and resistance at 7,250, amid negative sentiment linked to adjustments in high shareholding composition.

“This aligns with MSCI’s methodology projections, which had already been anticipated by the market,” he said.

Meanwhile, the Financial Services Authority (OJK), the IDX, and the Indonesian Central Securities Depository (KSEI) have completed four key transparency reform agendas aimed at improving market credibility and aligning with global standards, including those related to MSCI.

The measures include disclosure of stock ownership above 1%, implementation of High Shareholding Concentration (HSC), classification of investors into 39 types, and raising the minimum free float requirement to 15%.

According to Kiwoom Sekuritas Indonesia, these reforms bring Indonesia closer to global practices, such as those applied by Hong Kong Exchanges and Clearing, particularly through the HSC scheme, which flags stocks with concentrated ownership as a signal of liquidity risk and transparency.

Changes to IDX Regulation I-A, effective March 31, 2026, further strengthen governance and liquidity through stricter free float rules and more detailed reporting obligations, including disclosure of beneficial owners above 10%.

“Overall, these reforms are aimed at increasing liquidity, improving price discovery, and enhancing the attractiveness of Indonesia’s capital market to compete globally,” Kiwoom said.

The IDX has released a list of nine stocks with High Shareholding Concentration (HSC) above 95% as of March 31, 2026: LUCY (95.47%), AGII (97.75%), SOTS (98.35%), IFSH (99.77%), MGLV (95.94%), ROCK (99.85%), RLCO (95.35%), DSSA (95.76%), and BREN (97.31%).

The exchange emphasized that HSC status does not automatically violate free float rules but serves as an indicator of concentrated ownership. Issuers are encouraged to increase public shareholding, with the possibility of reassessment once distribution improves, although no special notation has been assigned.

Kiwoom warned that MSCI may respond by removing some of these stocks from its index, particularly DSSA and BREN, which have the largest market capitalizations, along with AGII.

“This could have a significant impact on overall market movements today,” Kiwoom said.

Regionally, as of 9:12 a.m. Jakarta time, Japan’s Nikkei rose 0.97% to 53,636, while South Korea’s Kospi gained 0.97% to 5,429. Markets in Hong Kong and China were closed for the Qingming Festival, while Wall Street was shut on Friday for Good Friday.

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