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FTSE Russell continues to defer Indonesian index additions, tier changes until December
FTSE Russell freezes Indonesia changes until December 2026
FTSE Russell will continue to defer the addition of Indonesian stocks and most index classification changes until at least December, the index provider said on Tuesday.
FTSE Russell said the deferral would allow for an extended observation period to assess the effectiveness of market reforms aimed at improving transparency and integrity in Indonesia's capital markets. Index additions have been on hold since February.
The move comes against the backdrop of Indonesian markets facing continued scrutiny from global index providers over market transparency and investability. Index provider MSCI said in late-June it would extend its review of the market until November to assess reforms rolled out by Jakarta, while S&P Dow Jones Indices warned in early-July that Indonesia could be downgraded to frontier-market status.
On Tuesday, FTSE Russell said it had reviewed measures introduced by Indonesian authorities, including the disclosure of shareholder ownership data above 1%, publication of a high shareholding concentration list and enhancements to investor classification reporting.
The index provider will proceed with some changes at its September review, including industry classification updates, quarterly share updates, free-float decreases, capping updates and deletions linked to index eligibility screens.