The float variable will determine the stock selection of Index residents in the IDX market.

KONTAN.CO.ID – JAKARTA. The Indonesia Stock Exchange (IDX) hopes that the distribution of shares in the secondary market remains congested. Therefore, this stock market regulator will enter variables floating in the calculation of the index on the IDX.

"Yesterday, we simulated and tested again the new approach to the index.The point is simple, we intend to perfect the model selection of components of the index that floating or Floating adjusted the index, "said Hasan Fawzi, director of the Indonesian stock market, Thursday (10/25).

Hasan said that currently, the calculation of the index was solely based on the capitalization and trading activities of listed companies. Later, the variable floating will be one of the considerations to consider when preparing indexes on IDX such as LQ45 and IDX30.

He said that several countries had succeeded floating as one of the standards in preparing the index.

"We will take into consideration Floating adjusted this in all the indices gradually, "added Hasan.

As close as possible, the IDX will make adjustments in February. For information only, February and August are the months in which the Indonesia Stock Exchange updates the LQ45 index.

The IDX will be maintained so that there is no jump too big with the addition of this variable. Until now, said Hasan, this has been tested and the increase or decrease in these indices is not too significant.

JCI