FTSE Russell Plans to Remove 14 Indonesian Stocks as Ownership Scrutiny Continues

December review targets shares with concentrated ownership

FTSE Russell plans to remove 14 Indonesian stocks from its global equity indices at the opening of trading on December 21, 2026, while keeping restrictions on new Indonesian additions as it assesses reforms to shareholder transparency and market supervision.

The proposed removals include PT Bank Syariah Indonesia Tbk, two telecommunications infrastructure companies and nine companies in the smallest size category. All 14 have been identified as appearing on the Indonesia Stock Exchange's High Shareholding Concentration list, which flags companies whose shares are concentrated among a small number of holders.

The changes remain open to revision until the close of trading on December 4 and are scheduled to become final on December 7. FTSE Russell will use market prices for the December removals and monitor trading conditions so investors can carry out transactions at prices used in the index adjustment.

Indonesia retains its Secondary Emerging Market classification, and FTSE Russell says it is not considering the country for its Watch List. The restrictions instead concern how individual Indonesian shares enter, leave or change their weight within its indices.

FTSE Russell's November 2026 Indonesia treatment FAQ confirms that December will retain the approach used in September: eligible removals and certain reductions can proceed, while additions, increases in publicly available shares and most movements between company size categories remain deferred.

For investors, the result is a review that allows stocks to leave while keeping entry restricted. Funds that track affected indices must account for the removals, while companies seeking inclusion, including those newly listed through an initial public offering, face a continued wait.

Which companies are scheduled to leave?

The proposed changes cover all four company size categories in the FTSE Global Equity Index Series. These categories group companies by market value, with large companies at one end and micro companies at the other.

• Large: PT Bank Syariah Indonesia Tbk (BRIS).
• Medium: PT Dayamitra Telekomunikasi Tbk, also known as Mitratel (MTEL), and PT Tower Bersama Infrastructure Tbk (TBIG).
• Small: PT Mitra Adiperkasa Tbk (MAPI) and PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM).
• Micro: PT Bank Mayapada Internasional Tbk (MAYA), PT Indomobil Sukses Internasional Tbk (IMAS), PT Multi Bintang Indonesia Tbk (MLBI), PT Sarana Meditama Metropolitan Tbk (SAME), PT Sariguna Primatirta Tbk (CLEO), PT Sawit Sumbermas Sarana Tbk (SSMS), PT Sumber Tani Agung Resources Tbk, PT Temas Tbk (TMAS) and PT Tempo Scan Pacific Tbk (TSPC).

Nine of the 14 proposed removals, about 64%, come from the micro category. The other five comprise one large company, two medium companies and two small companies. No new Indonesian constituents were announced in the large, medium or small categories.

PT Sumber Tani Agung Resources Tbk is identified as STAA in one review summary and STTA in others. Investors checking the proposed change should match the company name against the final constituent file when the review becomes final.

Why concentrated ownership matters

The High Shareholding Concentration designation, usually shortened to HSC, concerns how ownership is distributed. A company can have many shares listed on an exchange while a small group holds most of them, leaving a much smaller quantity available for other investors to trade.

FTSE Russell's November 13 treatment announcement says companies subject to a regulatory warning about concentrated share ownership can be removed at the following index review under its free float restrictions. The December list applies that approach to the 14 companies.

Index investors need access to shares in sufficient quantities to follow a benchmark. When ownership is tightly concentrated, the amount available for trading becomes especially relevant to whether funds can buy or sell the required holdings. FTSE Russell is therefore examining both ownership information and the trading conditions surrounding the removals.

Market prices will be used for the removals

FTSE Russell plans to remove the affected HSC securities using market prices in December, rather than the zero prices used for HSC removals in the June 2026 review. That changes the value used when the affected securities leave the benchmark calculation.

An index removal price is part of the benchmark's accounting. A fund following that benchmark must manage its actual holdings through market transactions, making the availability of buyers and sellers important to its ability to follow the change.

FTSE Russell says it will monitor liquidity, meaning how readily shares can be traded, to ensure that the removal prices can be replicated by investors. A quoted price is most useful to an index fund when it can execute the required trade at or near that level.

The December announcement gives the effective date and pricing approach but provides no estimate of the amount funds will sell. The practical effect on each stock will depend on the holdings of funds following the affected indices and trading conditions around implementation.

Indonesia has already changed its domestic benchmark

The global index decision follows Indonesia's exclusion of HSC stocks from the Jakarta Composite Index, known locally as the IHSG, effective November 2. That domestic change covered 80 stocks estimated to represent about 18% of the benchmark's weight.

The Indonesia Stock Exchange announced that measure on October 21. It retained the index's existing calculation method, which accounts for shares available to public investors and limits an individual stock's weight to 9%, while adding HSC status as an exclusion rule.

Shares affected by that domestic benchmark change remained listed and available for trading. Their price movements stopped contributing to the IHSG calculation once the exclusion took effect. The December FTSE review changes membership in a different set of benchmarks used by international investors.

BEI began publishing its HSC list on April 2, 2026. Its assessment involves the exchange and the Indonesian Central Securities Depository, and companies can undergo a new assessment after improving their ownership structure.

What FTSE Russell will still update

The official FAQ sets out a detailed list of changes that can proceed in December. FTSE Russell will continue removing securities that fail eligibility checks, including those affected by prolonged suspensions, surveillance screening, insufficient liquidity or market values below the applicable exit thresholds.

Quarterly updates to the number of shares will use a 1% buffer. A buffer is a threshold used to determine whether a change is large enough to implement at that review. Decreases in free float will use a 3% buffer for stocks with free float above 15%, or a 1% buffer for those with free float between 5% and 15%.

Free float is the portion of a company's shares considered available to public investors rather than held in restricted or strategic holdings. It matters because an index needs to reflect the shares investors can realistically buy, as well as the company's total size.

FTSE Russell will also implement Industry Classification Benchmark updates, which determine a company's industry category, and capping adjustments, which limit how much weight a constituent can carry. Applicable exclusion lists covering environmental, social and governance criteria, ethical rules and Shariah requirements will continue to operate.

Changes arising from corporate spin-offs, where a business is separated into another company, can proceed, with removals where resulting entities fall below exit thresholds. Demotions from the large, medium or small categories into micro will also go ahead.

What remains on hold

FTSE Russell will continue deferring new Indonesian index additions, including companies coming to market through initial public offerings. Increases in free float and most changes between size categories will also remain on hold at the December review.

The exception for demotions into micro is important: a company can still move down from the large, medium or small categories into the smallest tier even while most other size movements are deferred.

The FAQ identifies WAF as the Weight Adjustment Factor, a multiplier used to adjust a security's weight in an index. Updates remain deferred except when the factor changes from a positive value to zero, removing the company from the relevant index.

FTSE Russell will consider further decisions before the March 2027 review, including a possible return to full index ranking. It has given no confirmed date for restoring the standard review process.

Why the reform assessment is continuing

Indonesian authorities introduced transparency measures in April 2026, including ownership data for holdings above 1%, publication of the HSC list and improvements to investor classification reporting. The wider reform effort also includes minimum free float requirements and stronger market surveillance tools.

FTSE Russell says it recognises progress but needs more time to assess how the measures work in practice. Its November assessment followed feedback from market participants and its external advisory committees, with attention to shareholder data, supervision, regulatory criteria and consistent enforcement.

FTSE Russell, the index provider responsible for the review, explains its December approach in the official FAQ:

Despite the measures implemented by the Indonesian market authorities, the December 2026 index treatment reflects a measured approach by FTSE Russell to allow additional time to monitor these developments and assess their effectiveness.

The ownership reforms directly affect index calculations. Better information about who holds shares can change the estimated quantity available to investors, which in turn affects index eligibility and weight. FTSE Russell cited uncertainty in determining free float when it postponed Indonesia's March 2026 review.

How the restrictions developed during 2026

The December restrictions follow a series of decisions beginning in February. The official FAQ records how FTSE Russell first paused a broad range of changes and later permitted selected updates while continuing its assessment.

• January 29: The Financial Services Authority, known as OJK, announced commitments to improve market integrity and transparency.
• February 5: The Indonesia Stock Exchange released its reform plan.
• February 9: FTSE Russell paused specified index and corporate event changes and postponed the March review for Indonesia.
• April: Authorities introduced ownership disclosure above 1%, HSC publication and investor classification improvements.
• June: Selected updates proceeded, including decreases in free float and share count changes without the usual buffers.
• September: FTSE Russell continued a restricted review approach.
• November 13: FTSE Russell announced that the September treatment would continue for December.
• December 4: The proposed review changes remain open to revision until the trading close.
• December 7: The changes are scheduled to become final, with later revisions generally considered only in exceptional circumstances.
• December 21: The removals are scheduled to take effect at the market opening.

FTSE Russell has continued implementing specified corporate events during the restrictions, including dividend distributions, stock splits and removals resulting from takeovers, bankruptcy, suspension or delisting. The policy has changed which review updates proceed rather than stopping all index maintenance.

Indonesia keeps its market classification

Indonesia remains a Secondary Emerging Market under FTSE Russell's equity country classification system. The official FAQ states that the index treatment does not affect that status and that Indonesia is not being considered for inclusion on the Watch List.

Country classification determines the market grouping used within FTSE Russell's benchmark system. The December review determines how particular Indonesian securities are treated within those benchmarks. Indonesia keeps its country grouping while individual companies face removals and restrictions on additions or weight changes.

FTSE Russell says it will continue working with local authorities and seeking feedback from market participants. Its next stated decision point is ahead of the March 2027 review, when it will consider whether conditions support further changes, including a possible return to full index ranking.

Key Points

• Fourteen Indonesian stocks are scheduled to leave FTSE global equity indices at the opening of trading on December 21, 2026.
• The proposed removals cover one large company, two medium companies, two small companies and nine micro companies identified with concentrated ownership.
• The list can change through December 4 and is scheduled to become final on December 7.
• December HSC removals will use market prices, with liquidity monitored so investors can replicate those prices.
• New additions, free float increases and most size category and weight adjustment changes remain deferred.
• Further decisions will be considered before the March 2027 review.
• Indonesia retains Secondary Emerging Market status and is not being considered for the FTSE Watch List.