TEMPO.CO, Jakarta - Global index provider FTSE Russell has decided to postpone the review of its Indonesian index, originally scheduled for March 2026. The decision was made based on Rule 2.4, Exceptional Market Disruption, in FTSE Russell's index policy.
FTSE Russell made this decision following input from External Advisory Committees and considering the potential surge in transactions and uncertainty regarding the determination of the free float share portion amidst the ongoing reform process.
"FTSE Russell will continue to monitor the progress of the reform plan and provide an update before the announcement of the quarterly review of the FTSE Global Equity Index Series (GEIS) on May 22, 2026," read an official statement from FTSE Russell, quoted on Tuesday, February 10, 2026.
Following this decision, FTSE Russell stated that, effective immediately, a number of corporate actions involving Indonesian stocks listed on the domestic exchange will not be implemented in the FTSE Russell stock index.
Suspended actions include the addition of new shares through initial public offerings (IPOs) or index reviews, the removal of shares due to index reviews, changes to large-, mid-, and small-capitalization segments, and changes in the number of outstanding shares due to new share issuances, share buybacks, or updates to outstanding share data.
Furthermore, changes in investability weight resulting from secondary share offerings or updates to shareholder data will also not be applied. For rights issues, FTSE Russell assumes the rights are sold.
However, FTSE Russell continues to implement certain corporate actions. Deletions of index constituents due to corporate actions such as acquisitions, mergers, suspensions, bankruptcies, and delistings will remain in effect.
Corporate actions that do not increase capital, such as stock splits, reverse splits, bonus shares, and mandatory spin-offs, will also remain in effect. Dividend distributions, both regular and special, are not affected by this policy.
FTSE Russell emphasized that the announcement is unrelated to the country classification of equities by LSEG. The next equity country classification announcement is still scheduled for April 7, 2026.
Previously, the Financial Services Authority (OJK) expressed its commitment to strengthening the integrity and transparency of the Indonesian capital market in a press conference on January 29, 2026. Several days later, on February 5, 2026, the Indonesia Stock Exchange (IDX) released its capital market reform plan through an official statement.
Meanwhile, Morgan Stanley Capital International (MSCI) has temporarily suspended rebalancing, or adjustments to the composition and weighting of Indonesian stocks. This decision follows MSCI's assessment of the free float of Indonesian stocks.
In its official statement, MSCI stated that this suspension was due to investor concerns regarding the transparency of the share ownership structure. While some global players support the use of the Monthly Ownership Composition Report from PT Kustodian Sentral Efek Indonesia (KSEI) as a supplementary reference, many investors have expressed concerns about KSEI's shareholder categorization.
"Despite minor improvements in the float data of the Indonesia Stock Exchange, investors highlighted that fundamental investability issues persist due to a lack of transparency in shareholding structures and concerns about the possibility of coordinated trading behavior that undermines proper price formation," MSCI said in its announcement, quoted on Wednesday, January 28, 2026.
Read: Warning Signs from Foreign Rating Agencies
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