OJK: MSCI Rebalancing is a Regional Phenomenon, Not a Specific Issue for Indonesia
The Financial Services Authority (OJK) views the changes in the MSCI index composition from the latest periodic review as part of a global adjustment mechanism occurring in various Asia-Pacific countries, not solely due to domestic Indonesian factors.
OJK Commissioner Chairman Friderica Widyasari Dewi stated that MSCI constituent changes are based on objective parameters such as market capitalisation, free float, liquidity, and share price dynamics.
According to her, the phenomenon of several stocks exiting the MSCI index is also happening in other countries in this review.
Japan recorded 14 issuers exiting the MSCI Global Standard Index, Taiwan 7 issuers, Malaysia 6 issuers, and South Korea 3 issuers. Even China, which added 22 new issuers, still had 24 issuers removed from the index.
“Therefore, this situation reflects a global portfolio allocation adjustment and broad market dynamics in the region, not merely a specific issue for Indonesia,” Friderica said in her statement.
Nevertheless, OJK sees the MSCI rebalancing momentum as an important reminder for the Indonesian capital market to continue improving quality and competitiveness.
OJK, along with the Indonesia Stock Exchange (BEI) and all market stakeholders, is said to continue pushing for strengthened market integrity, increased free float and stock liquidity, expanded investor base, and strengthened issuer governance.
Some focuses conveyed by OJK include:
Strengthening capital market integrity
Increasing stock free float
Encouraging trading liquidity
Expanding the domestic investor base
Strengthening issuer governance
Keeping the market attractive and investable
These steps are considered important to make the Indonesian capital market increasingly competitive, sustainable, and appealing to both domestic and global investors in the long term.
OJK also emphasised that the fundamentals of Indonesia’s financial services sector remain resilient and stable. Short-term volatility or global index changes are deemed not to alter the regulator’s commitment to maintaining a healthy, transparent, and credible market.
Going forward, OJK stated it will strengthen coordination with BEI, Self-Regulatory Organisations (SROs), and all market participants to enhance the attractiveness of the Indonesian capital market, making it more liquid and investable for global investors.
The OJK statement was issued following MSCI’s announcement of the MSCI May 2026 Index Review results on 12 May 2026. In this review, no Indonesian stocks entered the MSCI Global Standard Index.
Conversely, six Indonesian stocks were removed from the main index: AMMN, BREN, TPIA, DSSA, CUAN, and AMRT.
Specifically for AMRT, the Alfamart network operator’s stock did not fully exit MSCI as it entered the MSCI Indonesia Small Cap Index.
With these changes, the number of Indonesian stocks in the MSCI Standard Index is estimated to drop from 17 to 11 issuers after taking effect on 1 June 2026.
Rebalancing MSCI in May 2026 led to six Indonesian stocks exiting the MSCI Global Standard Index, including AMRT which moved to the small cap category. However, OJK affirmed that the changes are a regional phenomenon and not a specific issue for Indonesia.
Indonesia’s status as an MSCI Emerging Market also remains, although some analysts assess that Indonesia’s weight in the global index may decline and could affect short-term foreign fund flows in the domestic stock market.