MSCI Freezes Indonesian Stocks, Foreign Capital Outflows Surge

Morgan Stanley Capital International (MSCI) has again frozen Indonesian stocks in its August 2026 Index Review.

No Indonesian stocks were added to the MSCI indices, while 10 stocks were removed or downgraded.

In the evaluation announced on Thursday (13/8/2026), MSCI removed PT GoTo Gojek Tokopedia Tbk (GOTO) from the MSCI Global Standard Index.

Meanwhile, nine other Indonesian stocks were removed from the MSCI Global Small Cap Index.

PT Charoen Pokphand Indonesia Tbk (CPIN) was the only Indonesian stock to remain in the MSCI indices.

MSCI still maintains Indonesia in its emerging market classification. However, the absence of new entrants and the removal of several stocks indicate that the freeze on the Indonesian stock market is continuing.

The decision was a negative sentiment for the domestic market. On Thursday (13/8), the Jakarta Composite Index (JCI) fell 1.13%. Pressure was also visible from foreign fund flows, which reached Rp1.41 trillion on that day’s trading.

Cumulatively since the beginning of 2026, foreign funds leaving the Indonesia Stock Exchange (IDX) have reached Rp71.83 trillion.

Investor confidence weakens

University of Indonesia capital market observer Budi Frensidy assessed that MSCI’s decision reflects the still weak confidence of global investors in the Indonesian stock market.

According to him, Indonesia’s credibility premium has increased, so foreign investors are demanding greater risk compensation.

According to Budi, the issue of transparency regarding beneficial ownership in Indonesian stocks is a structural problem that has long existed.