MSCI and FTSE Remove Indonesian Stocks, Providing Momentum to Reform Capital Markets
JAKARTA — The wave of removals of Indonesian stocks from the MSCI and FTSE Russell global indices has created new pressure within the domestic capital market. Despite this volatility, the actions taken by these two global index providers are seen as a momentum for improving the quality and credibility of the Indonesian stock market.
Pressure on the market emerged after Morgan Stanley Capital International (MSCI) first removed several Indonesian stocks from its global index during its May 2026 evaluation. Shortly thereafter, FTSE Russell took similar steps regarding stocks with high shareholding concentration (HSC).
“Recently, our market has been in a state of very high uncertainty. The sources of this uncertainty are numerous, ranging from geopolitical tensions in the Middle East to fluctuations in commodity prices and the currency (rupiah). One element of this uncertainty was the market awaiting decisions from MSCI,” said the Acting President Director of the Indonesia Stock Exchange (IDX), Jeffrey Hendrik, during a press conference at the IDX building in Jakarta on Wednesday (13/05/2026).
Additionally, MSCI removed 13 Indonesian stocks from its Small Cap Indexes, including PT Aneka Tambang Tbk (ANTM), PT Astra Agro Lestari Tbk (AALI), PT Bumi Serpong Damai Tbk (BSDE), and PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO).
All changes will take effect after the market close on 29 May 2026 and become effective from 1 June 2026.
“FTSE Russell will remove affected securities (HSC) with zero price in its June 2026 review, which will be effective at the market opening on Monday, 22 June 2026,” FTSE Russell stated in its announcement on Wednesday (13/05/2026).
FTSE Russell assessed that these steps are necessary to maintain index integrity. The institution received feedback regarding the potential decline in liquidity for stocks with high shareholding concentration, which could make it difficult for passive investors to exit positions fairly.
In addition to removing HSC stocks, FTSE Russell has also decided to continue postponing the addition of new issuers, increases in free float weights, and full index re-ranking until at least September 2026, including for issuers resulting from initial public offerings (IPOs).
Nevertheless, FTSE Russell continues to appreciate the capital market reform agenda being undertaken by Indonesian authorities and will continue to monitor the effectiveness of increased market transparency.