Flooring Guide by Cinvex – JAKARTA — The Indonesia Stock Exchange (IDX) has announced a strategic initiative to boost the presence of Indonesian companies on global benchmark indices, specifically those managed by MSCI and FTSE Russell. Jeffrey Hendrik, Acting President Director of the IDX, confirmed that the exchange will initiate discussions with potential issuers to help them meet the stringent requirements necessary for inclusion in these prestigious global indices.
“We will engage in discussions to explore how we can collectively increase the number of listed companies entering global indices. Naturally, this will be done properly and in full compliance with regulations. We are committed to providing the necessary support for this goal,” Jeffrey stated at the IDX Building in Jakarta on Monday (May 25, 2026).
While the specific timeline remains internal, Jeffrey noted that the exchange is currently preparing a schedule for these meetings, which are expected to take place in the near future. The selection process will focus on companies that possess both sufficient market capitalization and strong liquidity, the two primary pillars required by global index providers. “We are identifying companies with market caps that align with index requirements and possess solid liquidity levels,” he added.
The urgency of this move follows recent reshuffles by global providers. On May 13, 2026, MSCI announced that it would remove five stocks from its Global Standard Indexes and 13 from its Small Cap Indexes, effective May 29, 2026. Similarly, on May 23, 2026, FTSE Russell announced the exclusion of four Indonesian stocks from its FTSE Global Equity Index Series (GEIS), set to take effect on June 22, 2026.
In the broader market, the Jakarta Composite Index (JCI) closed the trading day on Monday (May 25, 2026) with a positive performance, mirroring the upward trend in regional Asian markets. The JCI climbed 44.30 points, or 0.72 percent, to settle at 6,206.35, while the LQ45 index—which tracks 45 highly liquid stocks—rose 1.74 percent to 631.21.
Maximilianus Nico Demus, Associate Director of Research and Investment at Pilarmas Investindo Sekuritas, attributed the market’s optimism to improving global sentiment. “Regional Asian markets are rallying due to reduced global risk sentiment, driven by hopes for a potential peace agreement between the United States and Iran,” he noted. Reports suggest that senior U.S. officials are nearing a deal with Iran that could potentially reopen the Strait of Hormuz. Although a final agreement is pending, the prospect of peace has provided a much-needed catalyst for optimism regarding global energy flows and economic stability.
Domestically, the JCI experienced fluctuations throughout the day. While global sentiment provided a boost, the index faced pressure from the weakening Rupiah. Additionally, Bank Indonesia reported a balance of payments (NPI) deficit of 9.15 billion U.S. dollars for the first quarter of 2026. This widened deficit, compared to the same period in the previous year, has prompted investor concerns regarding Indonesia’s external resilience and has fueled increased demand for the U.S. dollar.
Despite these challenges, the market remained resilient. Seven sectoral indices closed in the green, led by the transportation and logistics sector, which surged 4.20 percent. The property and financial sectors also saw gains of 1.23 percent and 1.14 percent, respectively. Conversely, the energy sector faced the steepest decline at 1.94 percent, followed by the raw materials and healthcare sectors.
The day’s trading activity recorded 2,065,076 transactions involving 27.66 billion shares, with a total value of Rp16.95 trillion. Market breadth was positive, with 470 stocks advancing, 236 declining, and 114 remaining unchanged. This performance was in line with other major Asian indices, including Japan’s Nikkei (up 3.04 percent), the Shanghai Composite (up 0.96 percent), the Hang Seng (up 0.86 percent), and the Straits Times Index (up 0.05 percent).
Summary
The Indonesia Stock Exchange (IDX) is launching a strategic initiative to increase the representation of Indonesian companies within global indices managed by MSCI and FTSE Russell. Acting President Director Jeffrey Hendrik confirmed that the exchange will collaborate with potential issuers to ensure they meet critical market capitalization and liquidity requirements. This effort comes in response to recent announcements by MSCI and FTSE Russell regarding the removal of several Indonesian stocks from their respective global series.
Meanwhile, the Jakarta Composite Index (JCI) showed resilience, closing with a 0.72 percent gain driven by positive regional sentiment despite domestic pressures. Although concerns regarding Indonesia’s balance of payments deficit and a weakening Rupiah persist, market performance remained stable with broad gains across several sectors. The IDX aims to leverage this market stability to help listed companies regain their status in international benchmarks through structured support and regulatory compliance.