FTSE Removes Several Indonesian Stocks; Indonesia Stock Exchange Boss Responds
JAKARTA — The Indonesia Stock Exchange (IDX) has spoken out regarding the decision by FTSE Russell to remove several Indonesian stocks from its global index due to high shareholding concentration (HSC). The IDX considers this step to be a short-term consequence of the reform agenda currently being implemented within the domestic capital market.
The Acting President Director of the IDX, Jeffrey Hendrik, stated that the decision by FTSE Russell had actually been anticipated for some time. “Stocks that fall under High Shareholding Concentration were indeed something we anticipated would be removed by the Global Index Provider,” Jeffrey told reporters at the IDX Building in Jakarta on Monday (18/5/2026).
He added that the market had also anticipated the decision, as warnings from the global index provider had been issued well in advance. “I believe the warnings were provided long ago, so this is something the market has already prepared for,” he explained.
FTSE Russell’s move should be viewed as part of the long-term process of improving the nation’s capital market. Despite causing short-term pressure, these reforms are believed to be essential for making the Indonesian capital market healthier and more credible in the eyes of global investors. “Once again, this is a short-term consequence that must be accepted, but it is part of our effort to improve our market for the long term,” Jeffrey noted.
Furthermore, the decision by FTSE Russell provides certainty for market participants after several weeks of uncertainty. According to Jeffrey, the definitive stance from the global index provider can help reduce psychological pressure on the market.
FTSE Russell is a leading global stock index provider that compiles lists of selected stocks from around the world, serving as a primary benchmark for global institutional investors. While acknowledging the reform agenda of the Indonesian exchange authorities, FTSE Russell maintained its conservative approach in determining index composition. “FTSE Russell will remove the affected securities (HSC) with zero price during the June 2026 review, which will be effective at the market opening on Monday, 22 June 2026,” FTSE wrote in its statement on Wednesday (13/5/2026).