FTSE Russell to Cull Concentrated Indonesian Stocks by June

4 hours ago 1

TEMPO.CO, Jakarta - The global index provider FTSE Russell will remove Indonesian stocks suspected of having highly concentrated ownership, set to take effect in June 2026.

FTSE Russell stated that market feedback indicates the liquidity of these stocks is expected to deteriorate leading up to the June 2026 index review.

"Under such circumstances, investors tracking the index may be unable to divest regularly without undue market impact or the availability of adequate counterparties, posing potential risks to the index replication capability," FTSE Russell wrote in its announcement on Wednesday, May 13, 2026.

Based on this condition, FTSE Russell will remove the relevant stocks at price of zero to ensure index integrity and replicability. This implementation will take effect at the opening of trading on Monday, June 22, 2026.

FTSE Russell also mentioned that they have observed regulatory efforts to reform the Indonesian capital market. However, they have decided to postpone a full index re-ranking, increased free float, and addition of listed stocks in Indonesia until the September 2026 index review. "FTSE Russell will continue to carefully monitor market developments in Indonesia and maintain communication with local market authorities," FTSE Russell stated.

Meanwhile, for the June 2026 review, FTSE Russell will proceed with several index updates for Indonesia. First, Industry Classification Benchmark updates. Second, quarterly stock updates without the 1 percent standard application. Third, quarterly free float adjustments. Fourth, changes in large, medium, small, or micro market capitalizations due to spin-offs. Fifth, updates to the exclusion list based on ESG (Environmental, Social, Governance) data.

Read: JCI Plummets 3.53% This Week Amid MSCI Rebalancing

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