TEMPO.CO, Jakarta – Global index provider FTSE Russell has removed eight Indonesian stocks from its FTSE Global Equity Index Series (GEIS) as part of its June 2026 quarterly review, raising concerns over ownership concentration, free float requirements, and market transparency.
The changes, announced in two stages in late May and early June, will take effect on June 22, 2026. Several stocks were excluded for failing FTSE Russell's eligibility criteria, including high shareholding concentration, insufficient public share ownership, and surveillance screening requirements.
The move comes as international index providers increase scrutiny of Indonesia's capital market, particularly regarding ownership transparency and stock liquidity.
FTSE Russell is one of the world's leading stock index providers, whose benchmarks are widely used by institutional investors, pension funds, exchange-traded funds (ETFs), and asset managers. Its FTSE Global Equity Index Series serves as a reference for many global funds when allocating investments in emerging markets, including Indonesia.
Because many investment products track FTSE Russell indexes, stocks included in the benchmark often benefit from passive fund inflows. Conversely, stocks removed from the index can face selling pressure as index-tracking funds adjust their portfolios.
According to information compiled from CNN Indonesia and market analysis platform Stock Setup, FTSE Russell evaluates companies based not only on market capitalization but also on factors such as free float levels, trading liquidity, ownership transparency, corporate ownership structures, and overall market integrity.
Indonesia currently maintains its status as a Secondary Emerging Market in FTSE Russell's classification system. However, since early 2026, both FTSE Russell and MSCI have increased monitoring of the Indonesian market due to concerns over ownership concentration and transparency among several listed companies.
One of the key reasons behind the latest removals is high shareholding concentration, a condition where a large portion of a company's shares is controlled by major shareholders, leaving relatively few shares available for public trading. FTSE Russell considers this a risk because it can reduce liquidity and increase the potential for price distortions.
As reported by CNN Indonesia, four Indonesian stocks were removed during FTSE Russell's initial announcement on May 23.
PT Dian Swastika Sentosa Tbk (DSSA), part of the Sinar Mas Group, was removed from the large-cap category after failing the high shareholding concentration assessment. PT Daaz Bara Lestari Tbk (DAAZ) was excluded from the micro-cap category because its free float fell below the minimum threshold.
Meanwhile, PT Hillcon Tbk (HILL) and PT Mulia Industrindo Tbk (MLIA) were removed after failing FTSE Russell's surveillance screening process.
A second announcement on June 2 added four more Indonesian stocks to the removal list.
PT GoTo Gojek Tokopedia Tbk (GOTO) and PT Trimegah Bangun Persada Tbk (NCKL) were removed from the GEIS Mid Cap Index after being placed on the Indonesia Stock Exchange's Development Board, a market segment that does not meet FTSE Russell's eligibility criteria.
PT BUMA Internasional Grup Tbk (DOID) and PT Nusantara Sejahtera Raya Tbk (CNMA) were also removed after failing surveillance screening requirements during the index review process.
Here are the complete list of Indonesian stocks removed from the FTSE Russell Index, along with the reasons why:
1. PT Dian Swastika Sentosa Tbk (DSSA)
This Sinar Mas Group-owned stock was removed from the GEIS large-cap category due to its high shareholding concentration (HSG) structure.
"Failed high shareholding concentration," read the FTSE Russell announcement on Saturday (May 23).
2. PT Daaz Bara Lestari Tbk (DAAZ)
This company's shares were removed from the micro-cap category because their free float was below the minimum threshold.
3. PT Hillcon Tbk (HILL)
This issuer's shares were deemed to not meet the criteria because they failed the surveillance stocks screen.
4. PT Mulia Industrindo Tbk (MLIA)
This company's shares were also removed due to their failure to meet the surveillance stocks screen.
5. PT GoTo Gojek Tokopedia Tbk (GOTO)
This stock was removed from the GEIS Mid Cap Index because it was deemed not to meet the index requirements after being listed on the IDX Development Board.
6. PT Trimegah Bangun Persada (NCKL)
Similarly, this company's stock was also removed from the GEIS Mid Cap Index because it was deemed not to meet the index requirements.
7. PT BUMA Internasional Grup Tbk (DOID)
This company's stock was removed from the GEIS Micro Cap Index after failing the index review process (failed surveillance stocks screen).
8. PT Nusantara Sejahtera Raya Tbk (CNMA)
This company's stock was also removed from the Micro Cap Index because it was deemed not to meet the index review process (failed surveillance stocks screen).
Acting Indonesia Stock Exchange President Director Jeffrey Hendrik described the removals as a short-term consequence of ongoing reforms in Indonesia's capital market.
"We understand this as a short-term consequence of the reform efforts we are collectively undertaking in our capital market," Jeffrey said at the Indonesia Stock Exchange building in South Jakarta on May 25.
While the removals may create short-term market pressure, analysts note that exclusion from FTSE Russell does not automatically indicate deteriorating corporate fundamentals.
Potential impacts include foreign fund outflows from ETFs and index funds, lower trading liquidity, and negative market sentiment toward affected stocks. Repeated removals could also influence Indonesia's weighting within global equity indexes.
At the same time, market observers believe the move could encourage improvements in Indonesia's capital market governance. Increased transparency, stricter free float requirements, and stronger ownership disclosure standards are among the reforms expected to strengthen investor confidence over the long term.
The June 2026 review highlights the growing importance of transparency and liquidity standards as Indonesia seeks to maintain its attractiveness to international investors and preserve its standing within global emerging market indexes.
Read: FTSE Russell to Cull Concentrated Indonesian Stocks by June
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