On February 1, 2019, the Indonesia Stock Exchange issued the IDX80 Index, which is an index of the price of 80 (eighty) stocks of Listed Companies that have high liquidity and large market capitalization and supported by good corporate fundamentals. The IDX80 index is hoped to be an alternative reference for investors and Fund Managers in doing investments.
The IDX80 selection process begins with the determination of universe stocks, by choosing 150 stocks from all listed stocks based on the total value of transactions on the regular market over the past 12 months. Of the 150 stocks, 80 stocks of IDX80 Index constituents were selected by considering liquidity factors, namely the value and frequency of transactions in the Regular Market, the number of days transactions in the Regular Market and free float stock market capitalization. IDX also pays attention to fundamental factors which include financial performance, compliance, and others.
The IDX80 Index calculation method uses the Capped Free-Float Adjusted Market Capitalization Weighting method. This index uses the free float market capitalization as the weight by imposing a capping on a stock in the highest index of 9% at the time of evaluation. IDX sets the base date for the IDX80 Index on January 30, 2012 with a base value of 100.
IDX will conduct 2 types of periodic evaluations of the IDX80 Index, which are Major Evaluations which include evaluations of constituents and readjustments to the weight of stocks in the index. Next is the Minor Evaluation which only includes a readjustment of the weight of stocks in the index. Major Evaluation of the IDX80 Index will be conducted at the end of January and will be effective every first Exchange Day in February. Minor evaluations for the index are carried out at the end of July and then will be effective every first Exchange Day in August.