Rancak Media – JAKARTA – The Indonesia Stock Exchange (BEI) views the recent removal of four domestic stocks from the prestigious FTSE Russell index as a short-term consequence of its intensive reform efforts, undertaken jointly with regulators.
Jeffrey Hendrik, the Acting Director-President of the Indonesia Stock Exchange, acknowledged that the potential outflow of foreign funds from the Indonesian market represents a risk associated with FTSE’s rebalancing. However, he emphasized that the comprehensive reforms implemented by regulators are ultimately designed to yield substantial long-term benefits for the capital market.
“We indeed understand this as a short-term consequence of the reform initiatives we are collectively pursuing in the Indonesian capital market. While a short-term outflow of foreign funds might occur, our ongoing efforts are unequivocally geared towards the medium and long-term prosperity of our capital market,” Hendrik stated to reporters at the BEI on Monday, May 25, 2026.
According to Jeffrey, investors with a long-term investment horizon will ultimately reap rewards from the capital market reforms championed by the Financial Services Authority (OJK) and Self-Regulatory Organizations (SROs).
Nevertheless, the BEI is not idly observing these developments. Jeffrey further explained that the institution is actively identifying companies with the potential to be included in prominent global indices, such as MSCI and FTSE. This proactive approach underscores the BEI’s commitment to enhancing the market’s international standing.
These internal preparations within the BEI are progressing rapidly, with plans to engage listed issuers in discussions soon. The goal is to facilitate their re-entry into the ranks of global index stocks. “We are reviewing companies whose market capitalization falls within the range suitable for global index inclusion and which exhibit robust liquidity. We will then invite them for discussions. Naturally, we will adhere to the transparent criteria set forth by global index providers,” he affirmed.
In a detailed official announcement by FTSE, released on Saturday, May 23, 2026, a comprehensive clean-up operation was conducted on several Indonesian stocks during its quarterly review for the June 2026 period.
The review document from FTSE Russell confirmed DSSA’s exclusion due to “failed high shareholding concentration.” Furthermore, FTSE implemented an extreme technical mechanism, removing the constituent at a “price of zero.” This decision unequivocally highlights FTSE’s rigorous evaluation of free float aspects and the trading quality of issuers’ shares within the Indonesian capital market. Beyond DSSA, FTSE also delisted several other stocks from its Micro Cap category.
Among these, PT Daaz Bara Lestari Tbk. (DAAZ) was removed from the index for failing to meet the “minimum free float requirement.” Concurrently, PT Hillcon Tbk. (HILL) and PT Mulia Industrindo Tbk. (MLIA) were both delisted for failing to pass the “surveillance stocks screen.”
FTSE Russell stated that this list of quarterly review results might still undergo changes until the market close on June 5, 2026. The modifications are set to become effective from June 8, 2026, and will be considered final unless extraordinary circumstances arise, as per FTSE Russell’s policy.
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Summary
FTSE Russell removed four Indonesian stocks from its index during its June 2026 quarterly review, citing issues such as high shareholding concentration and failure to meet free float requirements. The Indonesia Stock Exchange (BEI) views this as a short-term consequence of comprehensive capital market reforms being undertaken with regulators. While acknowledging a potential short-term outflow of foreign funds, BEI emphasized that these reforms are ultimately designed for the medium and long-term prosperity of the market.
In response, BEI is actively identifying and engaging other Indonesian companies with robust market capitalization and liquidity for potential inclusion in global indices like MSCI and FTSE. The delisted stocks included DSSA for “failed high shareholding concentration,” DAAZ for not meeting the “minimum free float requirement,” and HILL and MLIA for failing the “surveillance stocks screen.” This action underscores FTSE’s rigorous evaluation of free float and trading quality in the Indonesian capital market.
