MSCI Removes 18 Indonesian Stocks, Here's the BEI Chief's Response
Jakarta, CNBC Indonesia - PT Bursa Efek Indonesia (BEI) has responded following Morgan Stanley Capital International (MSCI)’s removal of 18 Indonesian stocks from its index constituents. Although the decision has triggered pressure on the domestic stock market, the regulator assures that trading conditions remain under control.
This was conveyed during a joint press conference held on Wednesday (13/5/2026) by PT Bursa Efek Indonesia (BEI), PT Kliring Penjaminan Efek Indonesia (KPEI), PT Kustodian Sentral Efek Indonesia (KSEI), and the Financial Services Authority (OJK) at the BEI building in Jakarta.
The press conference was attended by the Head of the Capital Market, Derivatives Finance, and Carbon Exchange Supervisory Executive of OJK, Hasan Fawzi, Acting President Director of BEI Jeffrey Hendrik, President Director of KPEI Iding Pardi, and President Director of KSEI Samsul Hidayat.
During the press conference, the regulators emphasised that domestic stock trading is still proceeding in a controlled manner without indications of panic selling. Stability is reflected in the relatively stable frequency and volume of transactions amid global market dynamics.
The market weakness observed is seen as part of the global investor portfolio adjustment process, which had been anticipated earlier, and it opens opportunities as stock valuations become more attractive compared to the beginning of the year.
On the other hand, the removal of several listed companies from the MSCI Global Small Cap index reflects the potential for increased market capitalisation, although the upgrade to higher indices is still delayed in line with MSCI’s freeze policy on adding new constituents from Indonesia.
Nevertheless, regulators and market participants reaffirmed their commitment to continuously strengthening transparency, governance, and market integrity so that Indonesian listed companies remain competitive in global indices.
Acting President Director of BEI Jeffrey Hendrik stated that MSCI’s latest statement is viewed as a positive development. This is because it can reduce one element of uncertainty in the market, especially amid high global volatility due to geopolitical turmoil, commodity price fluctuations, and currency movements.
According to him, this certainty is expected to serve as a foundation for the future growth of the Indonesian capital market together with all market participants and issuers.
Regarding the MSCI May 2026 Review results and the free float methodology, Jeffrey emphasised that each global index provider has its own methodology based on quantitative factors and must be respected.
BEI emphasised its focus on strengthening reforms and market mechanisms that are orderly, fair, and efficient, rather than engineering index assessments, to naturally encourage compliance with index requirements through strengthening market fundamentals.
Stock trading data at BEI for the period 11-13 May 2026 closed in negative territory. The Composite Stock Price Index (IHSG) changed by 3.53% over the week, closing at 6,723.320 from 6,936.396 the previous week.
In addition, BEI’s market capitalisation also changed by 4.68% to Rp11,825 trillion from Rp12,406 trillion the previous week. The average daily transaction frequency this week also changed by 0.56% to 2.53 million transactions from 2.55 million transactions the previous week.
The average daily transaction value this week changed by 18.78% to Rp18.82 trillion from Rp23.05 trillion the previous week. The average daily transaction volume at BEI this week also changed by 22.01% to 35.76 billion shares from 45.86 billion shares the previous week.
Foreign investors recorded a net selling value of Rp1,531 trillion today, and for the year 2026 so far, foreign investors have recorded a net selling value of Rp40,823 trillion.