Flooring Guide by Cinvex –, JAKARTA — Global index provider FTSE Russell has announced a significant policy change, set to delist stocks exhibiting High Shareholding Concentration (HSC) during its June 2026 index review. This pivotal move, originating from Jakarta, underscores a broader focus on market integrity and investor protection.
This action is a direct outcome of FTSE Russell’s continuous evaluation of Indonesia’s dynamic capital market, a process that has been underway since February 2026. While acknowledging and appreciating the transparency reforms spearheaded by Indonesian capital market authorities, including the mandated disclosure of ownership exceeding 1% and the public dissemination of HSC lists, FTSE Russell has reiterated its commitment to a conservative approach.
In a statement released on Wednesday, May 13, 2026, FTSE Russell confirmed its intention to remove affected HSC securities by assigning them a ‘zero price’ in the June 2026 review. This critical change is slated to take effect at the commencement of trading on Monday, June 22, 2026.
The decision to delist these stocks at a zero price is primarily aimed at bolstering the integrity of the index. FTSE Russell highlighted receiving substantial feedback indicating that liquidity in stocks flagged for HSC warnings is projected to decline sharply. Such a scenario would severely hinder passive investors from executing fair exits, thereby posing a significant risk to market stability and investor confidence.
This proactive measure by FTSE Russell comes amidst broader market reconfigurations. Earlier shifts included the rebalancing of MSCI indexes, with notable movements involving the Salim Group’s significant AMMN shareholdings. Furthermore, MSCI-related sentiments have previously exerted pressure on indices like Bisnis-27, contributing to the weakening performance of stocks such as INCO and BBRI.
Beyond the removal of these problematic stocks, FTSE Russell has also opted to maintain a suspension on the inclusion of new members and any increase in the free-float weighting for Indonesian issuers. This cautious policy is slated to remain in effect until at least the September 2026 index review, allowing for an extended period of scrutiny and observation.
The comprehensive suspension specifically encompasses the postponement of entry for issuers emerging from Initial Public Offerings (IPOs), as well as those that would typically qualify for an upgrade or re-ranking based on their market capitalization. This measure is intended to provide a more extended monitoring period, ensuring market conditions stabilize before further index adjustments.
During the upcoming June 2026 review period, only essential adjustments will proceed. These include routine updates to industry classifications, quarterly share counts, and the refinement of issuer lists based on ESG (Environmental, Social, and Governance) and Sharia criteria. These limited modifications reflect FTSE Russell’s careful and measured approach.
FTSE Russell has affirmed its commitment to diligently monitor the ongoing effectiveness of transparency reforms implemented by Indonesian authorities. A full reinstatement of the index rating process will only be considered once sufficient evidence of sustained market improvement and stability is observed, indicating a prudent and forward-looking strategy.
This development from FTSE Russell mirrors similar, prior actions by other major global index providers. Previously, MSCI Inc. unveiled the outcomes of its May 2026 index review for MSCI Equity Indexes, which saw the exclusion of six prominent Indonesian issuer stocks from the MSCI Global Standard Index.
According to MSCI’s announcement, these index changes were made effective at the close of trading on May 29, 2026, and officially implemented on June 1, 2026. Notably, the latest MSCI Global Standard Indexes Review did not introduce any new Indonesian constituents. Instead, it focused on the removal of six specific Indonesian stocks: AMMN, BREN, TPIA, DSSA, CUAN, and AMRT.
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Summary
FTSE Russell will delist stocks with High Shareholding Concentration (HSC) during its June 2026 index review, effective June 22, 2026. This decision, aimed at bolstering index integrity, follows feedback indicating a sharp decline in liquidity for HSC-flagged stocks, which could hinder passive investors and threaten market stability. The move mirrors similar actions by MSCI, which recently excluded six Indonesian stocks from its Global Standard Index.
Furthermore, FTSE Russell will maintain a suspension on the inclusion of new members and increases in free-float weighting for Indonesian issuers until at least the September 2026 review. This cautious policy, which includes postponing IPO entrants and re-rankings, allows for extended market observation. Only routine adjustments like industry classifications and ESG/Sharia criteria will proceed in the June review.