Video: 6 Indonesian Stocks Exit MSCI Global Standard Index, What Are the Effects?

Jakarta, CNBC Indonesia - MSCI continues to classify Indonesia as an Emerging Market by removing around 19 stocks from the MSCI index in the May 2026 rebalancing. Nevertheless, this MSCI decision is still met with a negative response from the market, driving the JCI to weaken to the 6,700 level and the rupiah to depreciate to Rp17,500 per US dollar.

Economist from the Center of Reform on Economics (CORE) Indonesia, Yusuf Rendy Manilet, views the MSCI decision as a serious signal for the market because it eliminates 6 stocks from the MSCI Global Standard and 13 stocks from the global small index, with no new stocks added.

This is based on structural issues in Indonesia’s stock exchange related to High Shareholder Concentration (HSC) or high stock ownership concentration, low free float in some issuers, and inadequate transparency of ownership data. This sentiment drives capital outflows in the capital market, and for global investors, the MSCI decision raises concerns about the accessibility and governance of Indonesia’s capital market, thereby increasing the risk premium and reducing long-term allocations.

From the business actors’ perspective, Economic Policy Analyst from the Indonesian Employers Association (APINDO), Ajib Hamdani, sees this MSCI rebalancing as encouraging the continuation of potential capital outflows.

The business community urges the stock exchange authorities to commit to accelerating the transformation of the financial market, particularly regarding stock free float and Ultimate Beneficial Owner (UBO), to support the strengthening of Indonesia’s capital market. Apindo even hopes for direct support from the President to be present at the exchange as backing for financial market reforms.

What is the impact of the MSCI rebalancing? What improvement efforts are needed? For more details, watch the dialogue between Shafinaz Nachiar with Economic Policy Analyst from the Indonesian Employers Association (APINDO), Ajib Hamdani, and Economist from the Center of Reform on Economics (CORE) Indonesia, Yusuf Rendy Manilet, in Closing Bell, CNBC Indonesia (Wednesday, 13/05/2026).