FTSE Russell is undertaking a significant rebalancing of its FTSE Global Equity Index Series (GEIS) in anticipation of the June 2026 review. A pivotal measure in this adjustment involves the exclusion of stocks identified with high shareholding concentration (HSC) from the index, signaling a renewed focus on market integrity and investor standards.
The term HSC refers to a critical list of issuers on the Indonesian Stock Exchange (BEI) where a substantial portion of shares is concentrated within a select few parties or affiliated groups. The BEI proactively released this data to bolster market transparency, mitigate the risks associated with speculative practices, and align with the stringent requirements of global investors.
Consequently, the shares of conglomerates Prajogo Pangestu’s PT Barito Renewables Energy Tbk (BREN) and the Sinarmas Group’s PT Dian Swastatika Sentosa Tbk (DSSA) are now at risk of being removed from the influential FTSE indices, a development closely watched by market participants.
FTSE Russell has affirmed its continuous vigilance over the developments within the Indonesian capital market, a commitment that follows its notification regarding the treatment of Indonesian indices issued on February 9, 2026. This ongoing monitoring is conducted through sustained communication with key market stakeholders, forming an integral part of its index policy implementation evaluation.
Furthermore, FTSE acknowledges the Indonesian market authorities’ commendable efforts in implementing several measures designed to enhance capital market transparency. These initiatives span the provision of shareholder ownership data exceeding 1%, the public disclosure of the HSC list, and significant improvements in investor classification reporting, all contributing to a more robust and transparent market environment.
Following a thorough review of these developments and careful consideration of feedback from market participants and external advisory committees, FTSE Russell has confirmed its decision to maintain certain special treatments for Indonesian stocks within the scope of the June 2026 index review.
Among the specific policies that will remain in effect are updates to the Industry Classification Benchmark (ICB), quarterly share portion adjustments without the standard 1% buffer, and quarterly free float reductions without the standard 3% buffer, reflecting a tailored approach to the Indonesian market dynamics.
FTSE will also continue to implement changes in stock capitalization categories resulting from corporate spin-offs, alongside updates to its exclusion lists pertaining to ESG, ethical considerations, and Sharia compliance, based on the most current ESG data. In a forward-looking statement, FTSE Russell indicated the possibility of extending the observation and monitoring period for the Indonesian market, underscoring its cautious and adaptive strategy.
“FTSE Russell will continue to defer full index rating adjustments, free float increases, and the addition (IPO) of newly listed Indonesian securities until at least the September 2026 index review,” FTSE announced on Wednesday, May 13, highlighting a deliberate pause in certain integration processes.
Exclusion of HSC Stocks
Beyond these ongoing adjustments, FTSE has explicitly stated that shares of companies flagged by regulators for high shareholding concentration (HSC) will be removed from the index at the next review. This decisive action is in strict adherence to FTSE Russell’s established free float limit guidelines, reinforcing the importance of broad market participation.
FTSE’s assessment indicates that the liquidity of these affected stocks is highly likely to experience a significant decline leading up to the June 2026 index review. Such a scenario could severely impede index-based investors from divesting their holdings in an orderly manner without triggering excessive market pressure or encountering counterparty limitations, thereby risking substantial disruption to index replication.
Consequently, FTSE Russell has resolved to delist affected stocks at a zero price during the June 2026 index review. This policy will become effective from the opening of trading on Monday, June 22, 2026, marking a critical change for the implicated entities and investors.
FTSE has confirmed that comprehensive details regarding the specific stocks impacted by this policy will be announced at a later date. FTSE Russell also reiterates its unwavering commitment to closely monitor developments in the Indonesian capital market and to maintain continuous coordination with local market authorities.
“Further decisions regarding index treatment, including the potential resumption of full index rating adjustments, will be deliberated before the September 2026 index review and communicated in due course,” FTSE concluded, promising transparency and ongoing engagement with the market.
Summary
FTSE Russell is preparing for the June 2026 rebalancing of its Global Equity Index Series, which includes the removal of Indonesian stocks identified with high shareholding concentration (HSC). This measure specifically threatens the inclusion of PT Barito Renewables Energy Tbk (BREN) and PT Dian Swastatika Sentosa Tbk (DSSA). By enforcing these stricter free float guidelines, FTSE aims to protect market integrity and prevent potential liquidity disruptions for index-based investors.
To address these concerns, affected stocks will be removed at a zero price effective June 22, 2026. While FTSE continues to recognize Indonesian authorities’ efforts to improve market transparency, it has decided to defer other adjustments, such as new IPO inclusions and full index ratings, until at least the September 2026 review. FTSE remains committed to ongoing monitoring and coordination with local stakeholders to ensure the stability of the Indonesian capital market.