MSCI Removes 19 Indonesian Stocks, Retail Investors Advised Against Panic Selling, Instead an Opportunity for Gradual Accumulation

JAKARTA, KOMPAS.com - Market participants are advised to remain calm in responding to the stock market reaction following the Morgan Stanley Capital International (MSCI) rebalancing announcement on Wednesday (13/5/2026) Indonesian time. Retail investors are also urged not to get caught up in panic selling actions. Co-founder of PasarDana and capital market practitioner Hans Kwee stated that the removal of several Indonesian issuers from the MSCI index is more of a technical nature. According to him, this step relates to the weighting and liquidity assessment methodology for stocks, rather than reflecting a deterioration in the companies’ fundamentals. “It needs to be understood that the deletion of several issuers from this index is more technical in relation to weighting methodology and liquidity, and does not necessarily reflect damage to the fundamentals of those companies,” Hans told Kompas.com. According to him, passive fund managers are likely to utilise the final period leading up to 29 May 2026 to rebalance their portfolios in line with the MSCI announcement results. “In addition, many market participants and fund managers have already anticipated the removal of those stocks by MSCI in recent months. Passive fund managers will partly utilise the final period on 29 May to rebalance their portfolios following the MSCI announcement,” he explained. Hans views the current short-term volatility as opening up accumulation opportunities in both blue-chip stocks and small-cap sectors that have corrected due to market panic and forced selling pressure. “Behind this short-term volatility, there is actually an opportunity to accumulate blue-chip stocks and small-cap sectors whose prices have anomalously corrected due to panic and forced selling pressure by passive fund managers,” Hans stated. According to him, the role of the Financial Services Authority (OJK) and self-regulatory organisations (SROs) such as the Indonesia Stock Exchange (BEI), the Indonesian Central Securities Depository (KSEI), and the Indonesia Clearing and Guarantee Corporation (KPEI) is crucial in tightening oversight of share ownership structures and affiliated transactions. This step is considered important for creating a fairer market. “Transparency is now a crucial asset for Indonesia to follow in the footsteps of India’s success. In this regard, the role of OJK and SROs is vital in tightening supervision over ownership structures and affiliated party transactions to ensure a fairer market,” he added.