DSSA Predicted to be Removed from FTSE Russell, Potential for Surge in Foreign Selling Pressure
PT Dian Swastatika Sentosa Tbk (DSSA), an energy and infrastructure company under the Sinar Mas Group controlled via PT Sinar Mas Tunggal, is predicted to be removed from the FTSE Russell global index after being placed on the high shareholding concentration (HSC) list. The potential exit of DSSA from the FTSE Russell index is expected to increase foreign selling pressure in the domestic stock market, following previous market volatility caused by MSCI index rebalancing, which also removed several large-cap Indonesian stocks from its global index.
Global index provider FTSE Russell is reportedly set to remove Indonesian stocks listed under the HSC category during its June 2026 index review. This action follows FTSE Russell’s continuous evaluation of the Indonesian capital market developments since February 2026. In this context, both FTSE Russell and MSCI tend to avoid stocks with low free floats or stocks where ownership is heavily concentrated within specific groups, as they are deemed to represent insufficient market liquidity.
“Looking at the additional criteria regarding the HSC list, DSSA, with a minimum weight of 4 per cent, will be a constituent that is removed,” said Faris when contacted on Monday (18/05/2026).
According to Indonesia Stock Exchange (BEI) data, there are nine issuers with ownership levels by specific groups exceeding 95 per cent. These issuers include PT Lima Dua Lima Tiga Tbk (LUCY) with 95.47 per cent concentration, PT Samator Indo Gas Tbk (AGII) at 97.75 per cent, and PT Satria Mega Kencana Tbk (SOTS) reaching 98.35 per cent. Additionally, PT Ifishdeco Tbk (IFSH) recorded a concentration of up to 99.77 per cent, followed by PT Panca Anugrah Wisesa Tbk (MGLV) at 95.94 per cent and PT Rockfields Properti Indonesia Tbk (ROCK) at 99.85 per cent.
Faris confirmed that if FTSE Russell removes DSSA and other stocks from the index, the situation could trigger additional force selling, as institutional investors using the FTSE Russell index as a benchmark must adjust their portfolios by selling the removed stocks. However, the impact is expected to be less significant than that of MSCI, as the assets under management (AUM) following FTSE are generally smaller.
“This will trigger additional force selling, although not as large as MSCI. However, we cannot provide an exact estimate because FTSE does not provide specific data on how much AUM uses its index as a benchmark,” he explained.