FTSE Russell Freezes Indonesia Review as Free Float Reforms Cloud Data

JAKARTA, Investortrust.id — FTSE Russell postpones its March 2026 index review for Indonesia on Thursday, Jan 29, 2026 in Jakarta after regulators launched sweeping capital market reforms that raised uncertainty over free float data, a move expected to temporarily freeze index driven trading activity.

The decision followed a press conference by Financial Services Authority (OJK) on Wednesday, Jan 29, 2026 and the publication of a reform plan by the Indonesia Stock Exchange on Wednesday, Feb 5, 2026.

In its notice, FTSE Russell said the delay reflected concerns raised by its advisory bodies over market stability and data reliability.

“Following feedback from FTSE Russell’s External Advisory Committees, and considering both the potential adverse turnover and the uncertainty in determining the accurate free float percentages of Indonesian securities in the light of the ongoing reform plan, FTSE Russell will postpone the March 2026 index review for Indonesia,” the index provider said.

FTSE Russell said the decision was taken under its index governance framework. “This is in accordance with rule 2.4 Exceptional Market Disruption of the Index Policy in the Event Clients are Unable to Trade a Market or a Security,” it said.

As a result, FTSE Russell said a wide range of index review driven corporate events would not be implemented with immediate effect. “Additions, deletions, large, mid and small cap size segment changes, shares in issue changes, investability weight changes, and rights issues will not be implemented for domestically listed Indonesian securities,” it said, adding that “the rights will be assumed to be sold.”

FTSE Russell said only limited actions would continue to be reflected. “The following corporate event types will continue to be implemented, including deletions resulting from takeovers, mergers, suspensions, bankruptcy and delisting, corporate actions which do not result in a capital increase, and dividend distributions,” it said.

The index provider stressed the pause was technical rather than a judgment on Indonesia’s market status. “This notice is not related to the Equity Country Classification,” FTSE Russell said, noting that the next classification announcement remains scheduled for Tuesday, Apr 7, 2026.

FTSE Russell said it would keep investors informed as reforms progress. “FTSE Russell will continue to monitor the developments of the reform plan and will provide an update in advance of the FTSE Global Equity Index Series June 2026 quarterly review announcement date of Friday, May 22, 2026,” it said.

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The postponement comes as IDX tightens free float requirements for IPOs, setting minimum public ownership at between 15 percent and 25 percent depending on market capitalization as part of broader governance reforms.

IDX Director of Company Valuation I Gede Nyoman Yetna said enforcement would focus on the largest offenders. “We will target these 49 first, even though all 267 must comply, because they already represent about 90 percent of the market capitalization of non compliant issuers,” Nyoman said.

The regulatory overhaul has been reinforced by criminal enforcement, with police naming new suspects in stock manipulation and IPO fraud cases in early February 2026 as authorities seek to restore investor trust.

Together, the FTSE Russell delay, tighter IDX rules, and law enforcement action mark a decisive reset of Indonesia’s capital market architecture after turbulence triggered by an earlier index review freeze by MSCI.