OJK: Stocks Removed from MSCI Not Exclusive to Indonesia
The Financial Services Authority (OJK) has stated that the announcement of the Morgan Stanley Capital International (MSCI) index rebalancing, which removed several stocks, is not unique to issuers in Indonesia’s capital market. Several other countries have experienced similar occurrences.
OJK Commissioner Chair Friderica Widyasari Dewi explained that changes in the MSCI index composition are part of a periodic review mechanism based on objective parameters, such as market capitalisation, free float, liquidity, and share price dynamics.
“This phenomenon is not only occurring in Indonesia but in almost all Asia-Pacific markets in this review,” said Kiki in her statement on Wednesday (13/5/2026).
Friderica, commonly known as Kiki, cited examples from countries including Japan, Taiwan, Malaysia, South Korea, and China. The number of issuers removed from the MSCI Global Index in those countries is also considerable.
“In the MSCI Global Standard Index, Japan saw 14 issuers removed, Taiwan seven, Malaysia six, South Korea three, and even China, despite adding 22 issuers, had 24 removed. This reflects global portfolio allocation adjustments and broad market dynamics in the region, not merely Indonesia-specific issues,” she stated.
Nevertheless, Kiki emphasised that OJK views this as an important reminder to continue strengthening the quality and depth of Indonesia’s capital market. OJK, along with all stakeholders, will continue to promote market integrity, increase free float and liquidity, expand the investor base, and strengthen issuer governance to enhance the competitiveness and sustainability of Indonesia’s capital market.
“The fundamentals of Indonesia’s financial services sector remain resilient and stable. Short-term volatility or global index changes do not alter our commitment to building a healthy, transparent, and credible market for domestic and global investors,” she said.
It is known that the global index provider, Morgan Stanley Capital International (MSCI), announced the results of the review of Indonesia’s market index in the MSCI May 2026 Index Review.