Indonesia’s Financial Services Authority (OJK) said the High Shareholding Concentration (HSC) status assigned by the Indonesia Stock Exchange (IDX) to three banking issuers is not related to the health of the banks or the safety of customer funds (16/08).

The three banking issuers listed under the HSC category are PT Bank Mega Tbk (MEGA), PT Bank Ina Perdana Tbk (BINA), and PT Allo Bank Indonesia Tbk (BBHI).

OJK Explains High Shareholding Concentration Status

OJK Executive Head of Banking Supervision Dian Ediana Rae explained that HSC is a category that reflects relatively concentrated share ownership among a small number of shareholders.

The status provides information to capital market participants because shares with concentrated ownership generally have the potential for higher price volatility than shares with more widely distributed ownership.

“High Shareholding Concentration (HSC) status in an issuer reflects relatively concentrated share ownership, where stocks with this status generally have the potential for higher price volatility compared with stocks with a more widely distributed ownership structure,” Dian said in an official statement.

HSC Does Not Affect Banking Operations

OJK stressed that the HSC classification is a technical aspect of capital market trading and does not affect daily banking operations.

The collection of funds, lending activities, and services for customers continue to operate normally under the supervision of the regulator.

OJK also emphasized that the HSC status does not indicate the condition of a bank’s health or the safety of customer funds.

OJK Urges Investors to Consider Bank Fundamentals

OJK advised retail and institutional investors not to use HSC status alone as the basis for making investment decisions.

Investors are encouraged to also consider company fundamentals, business prospects, valuation, and the implementation of good corporate governance.

“HSC can be one of the considerations for retail and institutional investors when making investment decisions, while continuing to pay attention to the company’s fundamental aspects. There is no direct impact on customers because banking operations are strictly regulated and prudently supervised by OJK,” Dian said.

PHOTO: FREEPIK

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