Valid April, IDX80, LQ45 And IDX30 Index Evaluation Provisions

IDX (Photo: Antara)

JAKARTA - PT Bursa Efek Indonesia (IDX) has adjusted the evaluation provisions for several stock indexes that will take effect starting from the April 2024 Evaluation. This is an effort to keep up with the development of the capital market and meet the demand for an index that is more relevant to the current market dynamics.

Adjustments were made to the IDX80, LQ45, and IDX30 Index, as announced by IDI number Peng-00058/BEI.POP/03-2024 dated March 27, 2024 regarding Adjustments to the IDX30, LQ45 and IDX80 Index Evaluation Criteria.

"The adjustment is carried out on two provisions, namely related to the evaluation period and the universe criteria of these indexes," said IDX Corporate Secretary Kautsar Primadi Nurahmad quoting Antara.

He explained, first, the major evaluation, which was previously carried out only twice in January and July with the effective period in February and August, will be carried out four times in January, April, July and October with effective periods in February, May, August and November.

"So, in April 2024, a major evaluation of these indexes will be carried out, replacing minor evaluations that apply based on the previous provisions," said Kautsar.

Second, he continued, before adjustments were made, the universe criteria for the IDX80 Index were the constituent shares of the Composite Stock Price Index (JCI) which had been recorded for more than six months and constituted 150 stocks with the highest transaction value in the regular market for the past 12 months.

After the adjustment, there were additional criteria for the IDX80 Index universe, namely never being suspended and always being transacted every day in the last six months, having a free float market capitalization above the limits set by the IDX, and having a minimum free float ratio of 10 percent.

Kautsar said adjustments would apply to the evaluation of the major in April 2024 and effective on the first day of the stock exchange in May 2024, except for provisions regarding the minimum free float ratio which will apply to the evaluation of the major in October 2024 and effective on the first day of the stock exchange in November 2024.

Through this adjustment, his party hopes that the constituents of the selected index can be more in line with their objectives and themes, as well as become a source of information for investors in making investment decisions.

"In addition, so that the index on the IDX can be used as a reference in the creation of index-based investment products, such as mutual index funds and Exchange-Trad Fund (ETF)," said Kautsar.