FTSE Russell to Remove Indonesian Shares with High Ownership Concentration

FTSE Russell, a global index provider, will remove Indonesian shares with high ownership concentration during the June 2026 index review.

FTSE Russell stated that market feedback indicates that liquidity in these shares is expected to deteriorate significantly leading up to the June 2026 index review.

“Under such conditions, investors following the index may not be able to regularly divest without excessive market impact or adequate counterparty availability, thereby posing a potential risk to the index’s replicability,” FTSE Russell wrote in its announcement on Wednesday, May 13, 2026.

Based on these conditions, FTSE Russell will remove the shares in question at a zero price to ensure the integrity and replicability of the index. This will take effect at the opening of trading on Monday, June 22, 2026.

FTSE Russell also stated that they have been monitoring the efforts of regulators to reform the Indonesian capital market. However, they decided to postpone a full index re-rating, an increase in free float, and the addition of shares listed in Indonesia until the September 2026 index review. “FTSE Russell will continue to closely monitor market developments in Indonesia and maintain communication with local market authorities,” said FTSE Russell.

Meanwhile, for the June 2026 review, FTSE Russell will continue with several index updates for Indonesia. First, an update to the Industry Classification Benchmark. Second, quarterly share updates without the application of a 1 percent standard. Third, quarterly free float adjustments. Fourth, changes in large, medium, small, or micro market capitalization due to spin-offs. Fifth, updates to the exclusion list based on ESG (Environmental, Social, Governance) data.

Editor’s Choice: How OJK is Reforming the Capital Market After MSCI’s Assessment