JAKARTA – Global index provider FTSE Russell has announced a significant decision to delist stocks characterized by high shareholding concentration (HSC) during its upcoming June 2026 index review.
This strategic move follows FTSE Russell’s continuous evaluation of developments within the Indonesian capital market, a meticulous process that commenced in February 2026.
While acknowledging and appreciating the transparency reforms implemented by Indonesian capital market authorities – including the disclosure of shareholdings exceeding 1% and the publication of HSC lists – FTSE has stated its intention to maintain a conservative approach regarding its index methodology.
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In an official statement released on Wednesday (May 13, 2026), FTSE affirmed, “FTSE Russell will remove affected [HSC] securities at a zero price during the June 2026 review, with the changes becoming effective at the market opening on Monday, June 22, 2026.”
The decision to remove stocks at a zero price is a crucial measure to safeguard the integrity of its indices. This step was prompted by feedback indicating that liquidity for stocks flagged with HSC warnings is anticipated to decline sharply, thereby making it challenging for passive investors to execute a fair exit from their positions.
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Beyond the removal of these problematic stocks, FTSE Russell has also opted to suspend the addition of new constituents and the increase in free float weighting for Indonesian issuers. This policy will remain in effect until at least the September 2026 index review.
The suspension specifically includes delaying the entry of issuers from initial public offerings (IPOs), as well as those that would otherwise have qualified for an upgrade or re-ranking based on market capitalization.
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“FTSE Russell will continue to defer full index re-ranking, increases in free float, and the addition of new issuers until at least the September 2026 index review, to allow for a more extended monitoring period,” the statement clarified.
During the June 2026 review period, the only adjustments that will proceed include updates to industry classifications, quarterly share counts, and issuer list updates based on ESG and Sharia criteria.
FTSE reiterated its commitment to continuously monitor the effectiveness of Indonesia’s transparency reforms before making a definitive decision to fully reinstate its index ranking processes in the future.
Notably, this development from FTSE Russell follows a similar significant announcement by MSCI Inc., which recently disclosed the results of its May 2026 review for MSCI Equity Indexes. In its latest update, six Indonesian issuer stocks were removed from the MSCI Global Standard Index.
According to MSCI’s announcement, all index changes will become effective at the close of trading on May 29, 2026, and will be implemented starting June 1, 2026.
During this particular MSCI Global Standard Indexes Review, no new Indonesian stocks were added as constituents. Conversely, MSCI proceeded to remove six prominent Indonesian stocks from the index: AMMN, BREN, TPIA, DSSA, CUAN, and AMRT.
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Summary
FTSE Russell has announced plans to delist stocks with high shareholding concentration (HSC) during its June 2026 index review, effective June 22. These securities will be removed at a zero price to protect index integrity, as declining liquidity poses significant exit challenges for passive investors. The provider will also suspend the addition of new constituents and increase free float weighting for Indonesian issuers until at least September 2026.
This decision follows a similar move by MSCI, which recently removed six major Indonesian stocks from its Global Standard Index. While FTSE Russell acknowledges recent transparency reforms by Indonesian capital market authorities, it maintains a conservative approach to ensure market stability. Until the September review, adjustments will be strictly limited to industry classifications, quarterly share counts, and ESG or Sharia criteria updates.