FTSE Russell has confirmed the removal of several Indonesian companies from its global equity benchmarks, including GoTo Gojek Tokopedia and Trimegah Bangun Persada, with the changes set to take effect when international markets open on June 22, 2026 (22/06).

The decision was announced through an unscheduled regulatory amendment and affects multiple Indonesian stocks across different index categories.

FTSE Russell Deletes Four Indonesian Companies From Key Benchmarks

GoTo Gojek Tokopedia and Trimegah Bangun Persada will be removed from the FTSE Global Equity Index Series Mid Cap Index.

Meanwhile, BUMA Internasional Grup and Nusantara Sejahtera Raya, the operator of the Cinema XXI movie theater chain, will be deleted from the Micro Cap Index.

According to FTSE Russell, the removals are linked to the companies' transfer to the Development Board of the Indonesia Stock Exchange (IDX), which the index provider considers an ineligible market segment.

Regulatory Changes Create Conflict With Global Investability Standards

The deletions highlight a mismatch between international index requirements and Indonesia's ongoing market restructuring efforts.

The source article states that Indonesian authorities have historically faced challenges related to concentrated share ownership and inconsistent free-float data.

Earlier this year, the Financial Services Authority (OJK) and the IDX introduced stricter transparency measures, including the publication of a "High Shareholding Concentration" warning list.

The article notes that global index providers have responded cautiously to these reforms and have chosen to reduce exposure rather than wait for the changes to develop further.

Foreign Funds Expected to Adjust Holdings Automatically

The removal of companies from major global indices has direct implications for institutional investors that track benchmark indices.

According to the article, passive exchange-traded funds and other index-tracking investment vehicles are generally required to mirror benchmark compositions.

As a result, the affected companies could face automatic selling from foreign funds following their removal from FTSE Russell indices.

The article describes these sales as non-negotiable because they are driven by benchmark tracking requirements rather than company fundamentals.

FTSE and MSCI Actions Highlight Broader Market Concerns

The latest index changes follow previous actions involving Indonesian equities by major global index providers.

Earlier this year, FTSE Russell temporarily suspended its regular Indonesian index review process under its "Exceptional Market Disruption" rule due to concerns about transparency surrounding localized free-float data.

The article also states that MSCI paused rebalancing activities involving Indonesian stocks after liquidity concerns affected index tracking reliability.

According to the source, the actions by both index providers have increased concerns among international asset allocators regarding the risk profile of Indonesian equities.

June Rebalancing Extends Beyond Indonesia

FTSE Russell's quarterly amendment also included changes affecting several Chinese companies.

CCS Supply Chain Management and Shenzhen Neptunus Bioengineering were removed from the Small Cap Index.

Geo-Jade Petroleum was also deleted from the Small Cap benchmark, with the removal taking effect at the end of May.

The article states that for Indonesian companies such as GoTo, Gojek, Tokopedia, and Trimegah Bangun Persada, the loss of foreign institutional support may leave their share prices more exposed to local market volatility as the June 22 implementation date approaches.

PHOTO: UNSPLASH

This article was created with AI assistance.

We make every effort to ensure the accuracy of our content, some information may be incorrect or outdated. Please let us know of any corrections at [email protected].