MSCI Turmoil Not Limited to Indonesia, 24 Chinese Stocks Also Booted Out
The Financial Services Authority (OJK) considers the MSCI adjustments shaking Indonesia’s stock market as a normal matter. OJK Commissioner Chair Friderica Widyasari Dewi stated that changes in the MSCI index composition are part of a periodic mechanism.
The changes in the MSCI index composition are based on several objective parameters such as market capitalisation, free float, liquidity, and share price dynamics. Therefore, the stock market volatility is not only experienced by the Indonesian index but also by stock exchanges in other countries.
“This phenomenon is not only happening in Indonesia, but in almost all Asia-Pacific markets in this review,” she said in her official statement on Wednesday (13/5/2026).
The woman familiarly called Kiki revealed that the global portfolio allocation adjustments and broad market dynamics in the region are not solely a specific issue for Indonesia. Several stocks on foreign exchanges are also experiencing adjustments.
“For example, in the MSCI Global Standard Index, Japan saw 14 issuers exit, Taiwan 7 issuers exit, Malaysia 6 issuers exit, Korea 3 issuers exit, and even China, although adding 22 issuers, also saw 24 issuers exit,” she explained.
Nevertheless, OJK views this as an important reminder to continue strengthening the quality and depth of Indonesia’s capital market. OJK, together with all stakeholders, will continue to promote strengthening of market integrity, increased free float and liquidity, expansion of the investor base, and enhancement of issuer governance so that the competitiveness of Indonesia’s capital market becomes stronger and sustainable.
She stated that the fundamentals of Indonesia’s financial services sector remain resilient and stable. Short-term volatility or global index changes do not alter OJK’s commitment to continue building a healthy, transparent, and credible market for domestic and global investors.
“Going forward, we will also continue to strengthen coordination with Bank Indonesia, Self-Regulatory Organisations, and all market participants to ensure that Indonesia’s capital market becomes increasingly attractive, liquid, and investable in the long term,” she concluded.