What is FTSE Russell? The Global Institution Removing Several Indonesian Stocks

The name FTSE Russell has once again drawn the attention of market participants after the global index provider removed eight Indonesian stocks from its global benchmark, the FTSE Global Equity Index Series (GEIS), during its June 2026 review. This decision adds pressure to several domestic issuers that were previously under scrutiny from another global index provider, MSCI.

For retail investors, FTSE Russell may not be as well-known as the Indonesia Stock Exchange (BEI) or the Financial Services Authority (OJK). But what exactly is FTSE Russell, and why does the removal of stocks from its indices become a major concern?

FTSE Russell is a global index provider operating under the London Stock Exchange Group (LSEG). According to the official LSEG website, the institution develops various equity indices used by investment managers, pension funds, insurance companies, and exchange-traded funds (ETKS) as investment benchmarks. These indices cover large, mid, small, and micro-cap stocks.

In practice, many passive investment funds follow the composition of the FTSE Russell indices. When a stock is included in an index, the funds tracking that index will purchase the related shares. Conversely, when a stock is removed, passive funds are typically required to sell their holdings. FTSE Russell maintains a strict set of rules to determine whether a stock is eligible for its indices. According to the FTSE Global Equity Index Series Ground Rules, stocks must meet several requirements, including market capitalisation, free float (the proportion of shares available to the public), and trading liquidity levels.