MSCI Removes Indonesian Stocks, IDX Chief: Positive, Reduces Uncertainty

JAKARTA, KOMPAS.com - PT Bursa Efek Indonesia (IDX) assesses that Morgan Stanley Capital International’s (MSCI) decision to remove several Indonesian-origin stocks from its global indices will have a positive impact on the domestic market. This decision is seen as capable of reducing one source of uncertainty that has long overshadowed the movements of the Composite Stock Price Index (IHSG). Acting CEO of IDX, Jeffrey Hendrik, stated that the domestic stock market has recently been in a state of uncertainty due to global and domestic sentiments. According to him, the uncertainty stems from various factors, including fluctuating geopolitical tensions in the Middle East, world oil price fluctuations, rupiah exchange rate weakening, and the MSCI index rebalancing that has been a focus for investors in recent weeks. Therefore, the MSCI rebalancing results related to the index review published on Wednesday actually provide new certainty for domestic capital market players, even though several Indonesian stocks must exit the global index. He views the MSCI announcement as at least eliminating one factor of uncertainty that previously made investors tend to adopt a wait-and-see approach. “Therefore, we certainly see that what MSCI conveyed today reduces one element of uncertainty,” he explained. Jeffrey is optimistic that once this uncertainty begins to subside, the domestic exchange will have room to grow again. However, market strengthening requires collective support from regulators, issuers, and all market participants. “Of course, that is something positive for the market and that is what was mentioned earlier as a basis for us to grow going forward. Of course, together with our issuers and all market participants,” he emphasised. MSCI previously announced the results of the periodic review or index review for the May 2026 period. This rebalancing result surprised market players as it was deemed far from expectations. In this adjustment, MSCI removed six Indonesian stocks from the MSCI Global Standard Indexes, namely PT Amman Mineral Internasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk (AMRT). Although removed from the MSCI Global Standard Indexes, AMRT shares were transferred to the MSCI Small Cap Indexes. In addition, MSCI also removed 13 Indonesian stocks from the MSCI Small Cap Indexes, namely PT Aneka Tambang Tbk (ANTM), PT Astra Agro Lestari Tbk (AALI), PT Bank Aladin Syariah Tbk (BANK), PT Bumi Serpong Damai Tbk (BSDE), PT Dharma Satya Nusantara Tbk (DSNG), and PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO). Then, PT Midi Utama Indonesia Tbk (MIDI), PT Mitra Keluarga Karyasehat Tbk (MIKA), PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), PT Pacific Strategic Financial Tbk (APIC), PT Sawit Sumbermas Sarana Tbk (SSMS), PT Triputra Agro Persada Tbk (TPAG), and PT MNC Digital Entertainment Tbk (MSIN). MSCI stated that all these changes will apply after the close of trading on 29 May 2026 and become effective from 1 June 2026.