Gotrade News - FTSE Russell removed four Indonesian stocks in its June 2026 quarterly review announced on May 23, 2026. The cuts target DSSA, DAAZ, HILL, and MLIA, citing free float and surveillance issues.
The Indonesia Stock Exchange (IDX, locally known as BEI) is now planning a comeback strategy targeting global index re-entry. The move pressures passive flows into EIDO, VWO, and other US-listed emerging market trackers with Indonesia exposure.
Key Takeaways
- FTSE Russell removed DSSA, DAAZ, HILL, and MLIA from its global indices effective June 22, 2026.
- IDX Acting CEO Jeffrey Hendrik calls the removals short-term consequences of ongoing capital market reforms.
- US-listed Indonesia ETFs face reduced passive inflows as index weightings shrink in subsequent rebalances.
Why FTSE Removed the Four Names
According to KabarBursa, DSSA was cut from Large Cap due to high shareholding concentration. DAAZ was removed from Micro Cap for failing free float requirements.
Hillcon (HILL) and Mulia Industrindo (MLIA) were both removed after failing FTSE's surveillance screen. Each name fell short on liquidity or governance benchmarks that index providers use to gate inclusion.
DAAZ's removal from the FTSE Global Equity Index Series takes effect after the close on June 19, 2026. As reported by KabarBursa, the stock has collapsed 67.23% over the past year. The latest close sits at Rp1,475, well below its November 2024 IPO price of Rp880's subsequent peak.
DAAZ's slide accelerated recently, falling 27.7% in a week and 37.87% over the past month. The company operates across nickel, coal, fuel trading, shipping, and mining services in Indonesia.
IDX's Comeback Strategy
Per BloombergTechnoz, Jeffrey Hendrik said IDX will identify listed companies with potential to enter global indices. The exchange plans to screen candidates against market cap and stock liquidity criteria.
Hendrik framed the removals as "short-term consequences" of ongoing capital market reforms. He argued that long-term institutional investors view Indonesia's reform direction as a net positive for market quality.
IDX will reference requirements set by global index providers including FTSE Russell and MSCI directly. The exchange continues monitoring free float compliance, though final index decisions sit outside its jurisdiction.
The strategy follows a difficult period that also saw separate MSCI rebalancing reduce Indonesian weightings. Combined, the index cuts have meaningfully shrunk the country's passive-flow footprint across major emerging market benchmarks.
For US investors, the most direct exposure runs through the iShares MSCI Indonesia ETF (EIDO), a pure-play vehicle on Indonesian equities. The fund's underlying index reflects the same constituent pressures driving the FTSE decisions.
Broader emerging market trackers feel the impact at a lower weighting but larger asset base. The Vanguard FTSE Emerging Markets ETF (VWO) tracks FTSE's emerging market index directly, making it the most exposed to this specific rebalance.
Investors seeking a second pure-play option often consider the VanEck Vectors Indonesia ETF (IDX). Both EIDO and IDX face mechanical selling pressure when underlying constituents lose global index membership.
The next several quarterly reviews will determine whether IDX's comeback strategy can restore Indonesia's standing. Index re-entry typically requires sustained improvements in free float, liquidity, and surveillance compliance over multiple review cycles.
