FTSE Russell Maintains Indonesia’s Emerging Market Status, Yet Removes 14 Stocks and Delays Full Rebalancing Until March 2027

LONDON | JATIMSATUNEWS.COM: Leading UK-based global index provider FTSE Russell has released a crucial decision regarding the treatment of Indonesia’s capital market in its latest index review announcement on Friday evening (November 13, 2026) local time.

In a document titled “Indonesia – Index Treatment for the December 2026 Index Review”, FTSE Russell confirmed that the Indonesian stock market will retain its classification as a Secondary Emerging Market and avoid being placed on a downgrade Watch List.

Despite the country’s status remaining secure, FTSE Russell took decisive action by removing 14 Indonesian listed stocks across various global index categories due to issues of High Shareholding Concentration (HSC).

Furthermore, the index provider, which operates under the London Stock Exchange Group (LSEG), also decided to extend the freeze on full index composition changes (rebalancing) for Indonesian securities until at least the March 2027 evaluation.

The deletion of the 14 stocks, which will take effect on December 21, 2026, targets several market capitalization tiers. Affected stocks include PT Bank Syariah Indonesia Tbk (BRIS) in the Large Cap category, PT Dayamitra Telekomunikasi Tbk (MTEL) and PT Tower Bersama Infrastructure Tbk (TBIG) in the Mid Cap category, as well as PT Mitra Adiperkasa Tbk (MAPI) and PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM) in the Small Cap category.

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FTSE Russell Maintains Indonesia’s Emerging Market Status

Testing the Effectiveness of Capital Market Reforms

The decision to hold off on full normalization is based on an evaluation of data transparency, liquidity, and index replicability.

Indonesian regulators, the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX), had previously responded to these concerns since early 2026 through new regulations, such as mandatory disclosure of shareholders owning over 1 percent and stricter free float requirements.

While appreciating these reform measures, FTSE Russell noted that additional time is needed to test the effectiveness of the rules on the ground and ensure a stable transition.

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Details of the Freeze and Adjustments

During the extension of this special treatment through March 2027, FTSE Russell will suspend the addition of new constituents (including IPOs), increases in free float ratios, upward market capitalization size migrations, and Weight Adjustment Factor (WAF) increases for Indonesian stocks.

Conversely, downward adjustments—such as the deletion of suspended stocks or those failing liquidity requirements—will continue to be implemented, alongside routine updates like ICB classifications and quarterly adjustments.

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Market Implications

For Indonesia’s capital market, this decision brings a twofold impact: on one hand, it offers psychological relief by avoiding massive capital outflows triggered by a country downgrade; on the other hand, it could spark short-term selling pressure on the 14 removed stocks ahead of the effective date.

Authorities’ success in proving consistent regulatory enforcement through March 2027 will be key to fully reopening the door for Indonesian market inclusion.***

Author: YAN