FTSE Russell has followed the same step as MSCI and decided to postpone its review and rebalancing of Indonesian stocks, which was originally scheduled for March 2026. The decision serves as a stability buffer while the domestic market undergoes reforms to trading regulations and share ownership structures.
The decision by FTSE Russell to postpone the review of Indonesian stocks is primarily driven by uncertainty surrounding the calculation of public shares, or “free float,” for domestic issuers. This move serves as a stability buffer intended to prevent potential market disruptions and detrimental turnover in trading activity while the domestic market implements infrastructure overhauls and reforms to trading regulations. These ongoing reforms include adjustments to minimum free float requirements to align with global standards and address transparency issues.
Additionally, the postponement reflects feedback from an external advisory committee and mirrors a recent decision by MSCI, which was prompted by concerns over share ownership structures and insufficiently transparent price formation.
Important Dates to Watch
- April 7, 2026: The scheduled date for the next country classification announcement.
- May 22, 2026: FTSE Russell is expected to provide an update on market reform monitoring.
- June 2026: The next quarterly review where changes to the index may be reconsidered.
