IDX: Indonesian Stocks Removed from Global Indices are a Short-Term Consequence

The Indonesia Stock Exchange (IDX) has stated that Indonesian companies categorised as High Shareholding Concentration (HSC)—those with highly concentrated ownership—being removed from the MSCI and FTSE Russell global indices is a short-term consequence of Indonesia’s capital market reform efforts.

“Stocks within the High Shareholding Concentration (HSC) category were indeed anticipated to be removed by global index providers. I believe warnings were issued well in advance, and this is something the market has already anticipated,” said the Acting President Director of IDX, Jeffrey Hendrik, at the IDX Building in Jakarta on Monday.

Jeffrey explained that global index providers such as MSCI and FTSE Russell utilise their own specific methodologies for including or excluding Indonesian stocks from their indices, which includes criteria regarding HSC stocks.

“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 added.

Jeffrey expressed hope that providing clarity regarding these short-term consequences would reduce sources of uncertainty in the Indonesian stock market, which has been prevalent in recent weeks.

“This means reducing one source of uncertainty in the market. For weeks, market participants have been waiting to see how MSCI and FTSE would respond to the reform efforts being carried out jointly by the OJK (Financial Services Authority) and SROs (Self-Regulatory Organisations), and now everything has been answered,” said Jeffrey.

Previously, MSCI removed Indonesian stocks categorised as HSC from its global indices, including PT Barito Renewables Energy Tbk (BREN) and PT Dian Swastatika Sentosa Tbk (DSSA). Subsequently, FTSE Russell also announced plans to remove Indonesian HSC-category stocks from its global indices in a notice titled ‘Indonesia-Index Treatment for the June 2026 Index Review’.

Earlier, on 2 April 2026 and 8 May 2026, the IDX had announced ten stocks in the HSC category, including PT BSA Logistics Indonesia Tbk (WBSA), PT Barito Renewables Energy Tbk (BREN), PT Dian Swastatika Sentosa Tbk (DSSA), and PT Abadi Lestari Indonesia Tbk (RLCO), as well as PT Rockfields Properti Indonesia Tbk (ROCK), PT Panca Anugrah Wisesa Tbk (MGLV), PT Ifishdeco Tbk (IFSH), PT Satria Mega Kencana Tbk (SOTS), PT Samator Indo Gas Tbk (AGII), and PT Lima Dua Lima Tiga Tbk (LUCY).