FTSE Russell Delays Indonesian Index Changes Amid Regulatory Scrutiny

FTSE Russell announced it will delay incorporating Indonesian stocks into its indexes and making other classification changes until at least December. This decision follows evaluations of new regulatory measures by Indonesian authorities, focusing on transparency in shareholder data and enhancements in investor classification and reporting.

FTSE Russell announced on Tuesday that it would postpone incorporating Indonesian stocks into its indexes and making most index classification changes until at least December. The decision reflects ongoing assessments of regulatory measures implemented by Indonesian authorities.

The index provider has been analyzing steps taken by Indonesia, including the requirement for disclosure of shareholder ownership above 1%, the release of a High Shareholding Concentration (HSC) list, and improvements in investor classification reporting.

These measures aim to boost transparency and confidence in the Indonesian market for global investors, a crucial consideration for FTSE Russell's decision-making on index inclusivity.