Following MSCI, FTSE Russell to Remove Indonesian Stocks with High Shareholding Concentration

JAKARTA, KOMPAS.com - Global index provider FTSE Russell will remove Indonesian stocks listed as having high shareholding concentration (HSC) from its index. The removal will take place during the June 2026 index review. This decision was made after FTSE Russell evaluated the development of the Indonesian capital market since February 2026. FTSE Russell is a global index provider, and its indices serve as a benchmark for global institutional investors. FTSE Russell appreciates the reform agenda being implemented by the Indonesian stock exchange authorities. However, the company has decided to adopt a conservative approach in determining the composition of its index. “FTSE Russell will remove affected (HSC) securities with a zero price during the June 2026 review, which will take effect at the opening of trading on Monday, June 22, 2026,” FTSE said in a statement on Wednesday (May 13, 2026). FTSE Russell has received feedback regarding the liquidity risk of stocks subject to HSC warnings. The liquidity of these stocks is expected to decline sharply, which could make it difficult for passive investors to exit these stocks in a reasonable manner. FTSE Russell has also decided to continue suspending the addition of new members and the increase in free float weight for Indonesian issuers. This policy will be in effect until the September 2026 index review. This suspension includes delaying the inclusion of issuers from initial public offerings (IPOs). This policy also applies to issuers that should undergo a ranking upgrade based on market capitalization. “FTSE Russell will continue to postpone the full index re-ranking, free float increase, and addition of new issuers until at least the September 2026 index review, in order to provide a longer monitoring period,” the statement continued. FTSE Russell stated that it will continue to monitor the effectiveness of the transparency reforms implemented by Indonesian authorities. This monitoring will serve as a basis before FTSE Russell fully restores the index ranking process.