Flooring Guide by Cinvex – , JAKARTA – The Indonesian Stock Exchange (BEI), also known as IDX, has reaffirmed its stance that the recent delisting of four domestic shares from the prestigious FTSE Russell index is a short-term consequence of the ongoing reform efforts vigorously pursued by the IDX and regulators. This strategic push aims to fortify the integrity and resilience of Indonesia’s capital market.
Jeffrey Hendrik, Acting President Director of the IDX, acknowledged the potential risk of foreign capital outflow from the Indonesian market due to the FTSE rebalancing. However, he emphasized that the robust measures undertaken by regulators are anticipated to yield significant long-term benefits for the capital market. “Indeed, we understand this as a short-term consequence of the reform efforts we are jointly undertaking in the Indonesian capital market. [Foreign fund outflows] might occur in the short term, but our continuous efforts are unequivocally geared towards the medium and long-term betterment of our capital market,” Hendrik stated to reporters at the IDX on Monday, May 25, 2026.
According to Jeffrey, investors with a long-term investment horizon stand to gain considerably from the comprehensive capital market reforms being implemented by the Financial Services Authority (OJK) and Self-Regulatory Organizations (SROs). Furthermore, the IDX is not passively observing these developments. Hendrik revealed that the exchange is actively identifying companies with strong potential for inclusion in esteemed global indices such as MSCI and FTSE.
This proactive initiative is being meticulously prepared within the IDX, with plans to engage listed issuers in discussions in the near future. The goal is to facilitate their re-entry into the ranks of global index constituents. “We are identifying companies whose market capitalization falls within the range that should qualify for [global indices] and possess sufficiently strong liquidity. We will then invite them for discussions. Naturally, we will adhere to the transparently communicated criteria set forth by global index providers,” he elaborated.
The official FTSE announcement, released on Saturday, May 23, 2026, confirmed a significant adjustment for Indonesian shares during its quarterly review for the June 2026 period. The review document issued by FTSE Russell indicated that DSSA was slated for exclusion due to “failed high shareholding concentration.” Additionally, FTSE implemented an extreme technical mechanism involving the removal of constituents at a price of zero.
This decision underscores FTSE’s stringent evaluation of free float, which refers to the proportion of shares readily available for trading, and the overall trading quality of issuer shares within the Indonesian capital market. Beyond DSSA, FTSE also removed several other shares from its Micro Cap category. These included PT Daaz Bara Lestari Tbk. (DAAZ), which was delisted for failing to meet the minimum free float requirement. Meanwhile, PT Hillcon Tbk. (HILL) and PT Mulia Industrindo Tbk. (MLIA) were both removed for failing to pass the surveillance stocks screen.
FTSE Russell clarified that the list resulting from its quarterly review remains subject to potential changes until the close of trading on June 5, 2026. These revisions are scheduled to become effective starting June 8, 2026, and will be considered final, unless extraordinary circumstances arise as per FTSE Russell’s policy.
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Summary
The Indonesian Stock Exchange (IDX) regards the recent delisting of four domestic shares from the FTSE Russell index as a short-term consequence of ongoing reforms aimed at strengthening the country’s capital market. Jeffrey Hendrik, Acting President Director of IDX, acknowledged potential short-term foreign capital outflow but emphasized that these efforts are geared towards significant medium and long-term benefits for the market. The IDX is also proactively identifying companies with strong potential for inclusion in esteemed global indices like MSCI and FTSE, planning to engage them to facilitate re-entry.
FTSE Russell’s official announcement on May 23, 2026, confirmed these delistings, highlighting its stringent evaluation of free float and trading quality. DSSA was removed due to “failed high shareholding concentration,” while PT Daaz Bara Lestari Tbk. (DAAZ) failed to meet the minimum free float requirement. Additionally, PT Hillcon Tbk. (HILL) and PT Mulia Industrindo Tbk. (MLIA) were delisted for failing the surveillance stocks screen. These changes are scheduled to become effective on June 8, 2026.