MSCI Rebalancing: Two Issuers Exit Global Standard, Nine from Small Index
Morgan Stanley Capital International (MSCI) has officially announced the results of its August 2026 Index Review. Several Indonesian stocks have undergone changes in their positions within the MSCI Global Standard Indexes and MSCI Global Small Cap Indexes. In this review, no Indonesian stocks were added to the MSCI Global Standard Indexes. Instead, two stocks were removed: PT GoTo Gojek Tokopedia Tbk (GOTO) and PT Charoen Pokphand Indonesia Tbk (CPIN). In the Small Cap category, MSCI added only one Indonesian stock and deleted nine. All changes will take effect after market close on 31 August 2026, or effective 1 September 2026.
MSCI removed GOTO from the MSCI Indonesia Investable Market Index (IMI) using a lowest system price of 0.00001 in the stock’s currency. This treatment differs from a normal constituent deletion, which typically uses the market price on the implementation date. MSCI took this step because it assessed potential index replication issues due to GOTO’s extremely low liquidity. GOTO shares have been consistently trading at the minimum price of Rp50 on the Indonesia Stock Exchange since the close of trading on 13 May 2026. This condition was deemed to make it difficult for institutional investors and passive fund managers to replicate the index change at a price that fairly reflects market conditions. The 0.00001 price is used only in MSCI’s index calculation system; it is not GOTO’s trading price on the Indonesia Stock Exchange and does not mean the company’s shares will trade at that level. Previously, MSCI had frozen changes to GOTO’s Number of Shares (NOS), Foreign Inclusion Factor (FIF), and Domestic Inclusion Factor (DIF), as well as additions and deletions, during the May 2026 review. MSCI stated at the time it would re-evaluate GOTO’s liquidity in the August review, which has now resulted in the decision to delete GOTO from the MSCI Indonesia IMI using the lowest system price.
Meanwhile, CPIN was also removed from the MSCI Indonesia Index in the Global Standard category. However, the animal feed producer’s stock has not completely exited the MSCI Indonesia index suite, as it has been added to the MSCI Global Small Cap Indexes. Thus, CPIN has undergone a segment migration or a downgrade from the Standard Index to the Small Cap Index.
In addition to the Standard Index changes, MSCI deleted nine Indonesian stocks from the MSCI Global Small Cap Indexes. These stocks include PT Bank Jago Tbk (ARTO), PT Bukalapak.com Tbk (BUKA), PT ESSA Industries Indonesia Tbk (ESSA), PT MD Entertainment Tbk (FILM), and PT Medikaloka Hermina Tbk (HEAL). MSCI also removed PT MNC Tourism Indonesia Tbk (KPIG), PT Raharja Energi Cepu Tbk (RATU), PT Semen Indonesia (Persero) Tbk (SMGR), and PT Transcoal Pacific Tbk (TCPI). With the addition of CPIN and the removal of nine stocks, the net change in Indonesia’s Small Cap segment is minus eight constituents. This composition change could potentially trigger portfolio adjustments from passive investment products tracking the MSCI indices, though the MSCI document does not include estimated fund flows for individual stocks. Globally, MSCI made 55 additions and 92 deletions in the MSCI ACWI Index, while the MSCI ACWI Small Cap Index saw 203 additions and 261 deletions.
Based on a review of MSCI’s latest announcement page, the decision regarding GOTO was the only additional announcement specifically related to Indonesian stocks following the release of the August rebalancing results. Other new announcements discussed global methodology changes, a simulation of Greece’s reclassification, and the treatment of certain stocks in India, Korea, and Taiwan. There were no new decisions regarding Indonesia’s market classification or a wholesale change to free float policy. The deletion of GOTO is a special treatment at the stock level due to liquidity and index replication issues, and it does not represent a downgrade of Indonesia’s market status from Emerging Market to Frontier Market. MSCI’s previously applied policies for the Indonesian market remain in effect, including the freeze on Foreign Inclusion Factor and Number of Shares increases, the non-acceptance of Indonesian stock additions to MSCI Investable Market Indexes, and the suspension of upward migrations from Small Cap to Standard Index. Market attention now turns to the MSCI November 2026 Index Review, where MSCI has previously stated it will provide further updates on its treatment of the Indonesian market.