Rancak Media – , JAKARTA — Global index provider FTSE Russell has announced its decision to remove stocks characterized by high shareholding concentration (HSC) from its indexes, effective during the June 2026 index review. This significant move is slated to come into force on the trading open of Monday, June 22, 2026.
This strategic action follows FTSE Russell’s ongoing comprehensive evaluation of developments within the Indonesian capital market, a process that commenced in February 2026. While FTSE Russell acknowledges and appreciates the transparency reforms implemented by Indonesian capital market authorities—including mandates for disclosing ownership exceeding 1% and the publication of HSC lists—the index provider maintains a conservative outlook.
In a statement released on Wednesday, May 13, 2026, FTSE Russell confirmed, “FTSE Russell will remove affected [HSC] securities at a zero price during the June 2026 review, which will be effective on the trading open of Monday, June 22, 2026.” The decision to delist these stocks with a zero price is crucial for ensuring the integrity of its indexes. This approach stems from feedback indicating that liquidity for stocks flagged with HSC warnings is anticipated to decline sharply, making it challenging for passive investors to exit positions fairly and efficiently.
Beyond the delisting of problematic stocks, FTSE Russell has also opted to extend the suspension of new member additions and increases in free float weightings for Indonesian issuers. This policy will remain in effect until at least the September 2026 index review. This suspension encompasses the delayed inclusion of issuers resulting from initial public offerings (IPOs) as well as those that would typically undergo a re-ranking based on market capitalization.
“FTSE Russell will continue to defer full index re-ranking, free float increases, and the addition of new issuers until at least the September 2026 index review, aiming to provide a longer monitoring period,” the index provider stated. During the June 2026 review period, the only adjustments that will proceed include updates to industry classifications, quarterly share counts, and issuer list updates based on ESG and Sharia criteria.
FTSE Russell affirms its commitment to continuously monitor the effectiveness of Indonesia’s ongoing transparency reforms before considering a full restoration of the index rating process in the future. This cautious approach underscores the importance of a robust and liquid market environment for global index inclusion.
Coinciding with these developments, MSCI Inc. previously announced the results of its May 2026 index review for the MSCI Equity Indexes. In its latest announcement, six Indonesian issuer stocks were removed from the MSCI Global Standard Index. All changes to the MSCI index are set to become effective at the close of trading on May 29, 2026, and will be implemented starting June 1, 2026.
Notably, during this particular MSCI Global Standard Indexes Review, no Indonesian stocks were added as new constituents. Instead, MSCI proceeded with the removal of six Indonesian stocks from its index: AMMN, BREN, TPIA, DSSA, CUAN, and AMRT. These parallel actions by prominent index providers highlight a period of increased scrutiny on certain aspects of the Indonesian stock market.
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Summary
FTSE Russell will remove stocks with high shareholding concentration (HSC) from its indexes, effective June 22, 2026. This decision follows an evaluation of the Indonesian capital market and acknowledges transparency reforms, though FTSE Russell maintains a conservative stance. The delisting at a zero price is intended to protect passive investors from potential illiquidity. Additionally, FTSE Russell is suspending new member additions and free float weighting increases for Indonesian issuers until at least September 2026.
This move by FTSE Russell mirrors recent actions by MSCI Inc., which removed six Indonesian stocks from the MSCI Global Standard Index effective May 29, 2026. Both index providers are increasing scrutiny on certain aspects of the Indonesian stock market, emphasizing the need for a robust and liquid market environment for global index inclusion. FTSE Russell will continue to monitor Indonesia’s reforms before considering a full restoration of index rating processes.
