FTSE Russell is undertaking a rebalancing and adjustment of its FTSE Global Equity Index Series (GEIS) ahead of the June 2026 review. A key step in this process involves the exclusion of stocks identified with high shareholding concentration (HSC) from its indexes.
HSC refers to a list of issuers on the Indonesia Stock Exchange (BEI) where a significant portion of shares is concentrated among a select few parties or affiliated groups. This data is proactively released by the BEI to enhance market transparency, mitigate the risks associated with speculative practices, and align with global investor standards.
Consequently, shares of prominent conglomerates such as 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 prestigious FTSE indexes.
FTSE Russell has affirmed its ongoing commitment to monitoring developments within the Indonesian capital market, following its index management notice issued on February 9, 2026. This comprehensive monitoring is conducted through continuous communication with key market stakeholders, forming an integral part of its index policy implementation evaluation.
Furthermore, FTSE acknowledges that Indonesian market authorities have implemented several measures to bolster capital market transparency. These initiatives include providing shareholder ownership data for holdings above 1%, publishing the HSC list, and enhancing investor classification reporting standards.
After a thorough review of these developments and considering feedback from market participants and its external advisory committee, FTSE Russell has confirmed its decision to continue applying specific special treatments for Indonesian stocks in the upcoming June 2026 index review.
Among the policies that will remain in effect are updates to the Industry Classification Benchmark (ICB), quarterly share proportion adjustments without the standard 1% buffer, and quarterly free float reductions without the standard 3% buffer.
FTSE will also continue to apply changes to stock capitalization categories resulting from corporate spin-offs and update its ESG, ethical, and Sharia-related exclusion lists based on the latest ESG data. Additionally, FTSE Russell has indicated the possibility of extending the observation and monitoring period for the Indonesian market.
“FTSE Russell will continue to defer full index re-ranking adjustments, free float enhancements, and the addition of Indonesian listed securities (IPOs) until at least the September 2026 index review,” FTSE stated in its announcement on Wednesday (May 13).
Removal of HSC Stocks
Beyond these ongoing measures, FTSE has declared that shares of companies receiving a high shareholding concentration (HSC) warning from the regulator will be removed from its indexes during the next review. This decision is consistent with FTSE Russell’s established free float limit guidelines.
FTSE assesses that the liquidity of these affected stocks is likely to significantly decline leading up to the June 2026 index review. Such a scenario could impede index-based investors from conducting orderly divestments without triggering undue market pressure or encountering limited counterparties, thereby risking disruption to index replication.
Consequently, FTSE Russell has resolved to remove the affected stocks at a zero price during the June 2026 index review. This policy will become effective at the market open on Monday, June 22, 2026.
FTSE has indicated that further details regarding the impacted stocks will be announced in due course. FTSE Russell also reaffirms its commitment to continuously monitoring the Indonesian capital market and maintaining coordination with local market authorities.
“Further decisions regarding index handling, including the potential resumption of full index re-ranking adjustments, will be considered prior to the September 2026 index review and communicated in a timely manner,” FTSE stated.
Summary
FTSE Russell is rebalancing its FTSE Global Equity Index Series, with a specific focus on removing stocks identified as having High Shareholding Concentration (HSC) in Indonesia. This measure aims to enhance market transparency and mitigate risks associated with speculative share ownership. Consequently, prominent stocks such as PT Barito Renewables Energy Tbk (BREN) and PT Dian Swastatika Sentosa Tbk (DSSA) are currently at risk of being excluded from the indexes during the upcoming June 2026 review.
To ensure market stability and prevent potential disruption to index replication, FTSE will remove these identified stocks at a zero price effective June 22, 2026. Furthermore, FTSE has decided to defer full index re-ranking adjustments and new IPO additions for the Indonesian market until at least September 2026. The organization continues to coordinate with local regulators and maintains specific special treatments regarding free float and share proportion adjustments to address ongoing market concerns.