Without MSCI and FTSE Support, Prajogo's Stocks Collapse in 2026

Companies belonging to the business conglomerate Barito Group, owned by Prajogo Pangostu, have all weakened significantly throughout 2026. This decline is primarily due to stricter rules implemented by global index providers and the subsequent removal of his shares from the prestigious MSCI and FTSE global indices.

At the start of the second trading session on Monday (18/05/2026), only Barito Renewables Energy (BREN) recorded gains, while the rest moved into the red zone. Even BREN itself had experienced a significant drop during the first session before rebounding in the second.

Chandra Asri Pacific (TPIA) recorded the deepest correction, falling 14.88% to hit the lower auto-rejection limit at Rp 3,660 per share. This was followed by Petrindo Jaya Kreasi (CUAN), which dropped nearly 10% to Rp 770; Chandra Daya Investasi (CDIA), which fell nearly 8% to Rp 930; Petrosea (PTRO), down 3% to Rp 4,870; and Barito Pacific (BRPT), which fell 3% to Rp 2,020.

The significant decline in Prajogo’s conglomerate stocks has been evident since the beginning of the year, after MSCI raised alarms regarding the Indonesian capital market’s lack of transparency. Concerns were raised that several stocks included in the MSCI index are owned by a small group of individuals, rendering transactions illiquid.

Specifically, throughout 2026, CUAN shares have plummeted by 66.48%, followed by BREN at 65.88%, PTRO at -55.51%, TPIA at -47.71%, CDIA at -43.41%, and BRPT at -37.92%.

The greatest pressure on these conglomerate issuers and the broader IHSG (Jakarta Composite Index) stems from stocks removed from the MSCI Global Standard Index and the MSCI Global Small Cap Index. MSCI officially removed six Indonesian stocks from the Global Standard Index, 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). Additionally, MSCI removed 13 Indonesian stocks from the Global Small Cap Index.

Shortly after the MSCI announcement, another global index provider, FTSE, also voiced concerns regarding the future of Indonesian stocks included in its indices. In a recent announcement titled “Index Treatment for the June 2026 Index Review” released on Wednesday (13/05/2026), FTSE issued a stern signal regarding the potential removal of stocks with high shareholding concentration (HSC) on the Indonesia Stock Exchange (IDX).

FTSE’s new rules were issued following efforts by Indonesian capital market authorities to increase transparency, including the publication of the High Shareholding Concentration (HSC) list. In the document, FTSE Russell emphasised that if a company becomes subject to a shareholding concentration warning from exchange and financial authorities—where floating shares are controlled by only a few parties—the stock will be removed from the index during the next review.

“To ensure the integrity and replicability of the index, FTSE Russell will remove securities affected by a zero price during the June 2026 review, effective from the market opening on Monday, 22 June 2026,” the official announcement stated.

This “zero price” policy was adopted because FTSE assesses that the liquidity of HSC stocks tends to deteriorate materially. There are concerns that institutional investors managing passive funds will be unable to find sufficient counterparties to exit these stocks suddenly. The zero-price policy is generally applied by FTSE to stocks of bankrupt companies that remain in the index, or stocks that have been suspended for a long time or are subject to sanctions, making them difficult to trade.

While FTSE has not yet released a specific list of issuers at risk, several stocks appear likely to be significantly impacted. Two major issuers frequently associated with issues regarding free float and ownership concentration—PT Barito Renewables Energy Tbk (BREN), owned by tycoon Prajogo Pangestu, and PT Dian Swastatika Sentosa Tbk (DSSA) from the Sinarmas Group—are under scrutiny as both are on the IDX’s HSC list.