MSCI Indonesia Review: Barito Pacific Out, BRMS Moved to Small Cap
The MSCI Indonesia review drops Barito Pacific and BRMS from its standard index as the IDX widens its concentrated-ownership watchlist to 383 stocks.
MSCI will remove Barito Pacific and Bumi Resources Minerals from its Global Standard Index for Indonesia, and add no Indonesian names in their place. The MSCI Indonesia review, announced on 11 November, lands as the Indonesia Stock Exchange (IDX) expands a watchlist of stocks with highly concentrated ownership to 383 companies.
The changes take effect after the close of trading on 30 November. Funds that track the indexes will have to sell the affected shares.
What the MSCI Indonesia review changed
PT Barito Pacific, the petrochemicals and energy group controlled by Prajogo Pangestu, leaves the Global Standard Index and will not join the Small Cap Index. PT Bumi Resources Minerals, part of the Bakrie Group, moves down into the Small Cap Index.
MSCI is also removing seven Indonesian stocks from its Small Cap Index. They are Avia Avian, Ciputra Development, Dayamitra Telekomunikasi, Elang Mahkota Teknologi, Jasa Marga, Rukun Raharja and Solusi Sinergi Digital.
Reuters described the review as a blow to Indonesia’s efforts to avoid a downgrade and keep its emerging market status. The MSCI Indonesia index now holds nine companies, after MSCI removed six in May and two more in August, the news agency reported.
About a month ago, MSCI warned that Indonesian stocks could be removed from its indexes next year and the market moved to “standalone” status, a harsher step than the downgrade it first threatened in January. MSCI had earlier raised concerns about transparency in shareholding structures and set the November review as a checkpoint for progress.
IDX widens its shareholding concentration list
Indonesia’s regulators have been trying to answer those concerns. On 11 November, the IDX published a High Shareholding Concentration (HSC) list of 383 listed companies, adding 300 stocks to the 83 already on it.
Under the revised method, a stock joins the list if 10 or fewer shareholders together hold at least 92.5% of its shares. The exchange dropped the previous Rp5 trillion (about US$275 million) market capitalisation threshold, so the screen now covers every listed company. It also removed the Price Impact Ratio from the evaluation.
The names on the list include Garuda Indonesia, Bank Syariah Indonesia, Wijaya Karya and Kimia Farma. The newly added stocks make up 6.16% of the Jakarta Composite Index’s total market value.
The new HSC stocks will be excluded from the composite index calculation from Friday, 13 November. IDX President Director Jeffrey Hendrik said the index would not necessarily fall by the full weight of the excluded stocks, since that weight is redistributed to other eligible shares. HSC status is not a sign of a rule violation, and the stocks remain listed and tradable.
Why the MSCI Indonesia decision matters for investors
The two moves together shrink the pool of Indonesian stocks that global funds can easily buy. Index trackers will sell the deleted names around 30 November, and local funds benchmarked to the composite may cut exposure to stocks dropped from it.
Jakarta shares have been under heavy pressure this year. The Jakarta Composite Index closed 0.21% lower at 5,115.04 on Wednesday, ending a five-session winning streak. On Thursday, after the MSCI announcement, it rebounded 2.66% to 5,250.89, though it remains down about 39% for the year. Foreign investors were net buyers of Rp510.5 billion on Thursday, but net foreign selling for the year has reached about Rp127 trillion, Kontan reported.
For Asia’s emerging market investors, Indonesia’s status matters. It is Southeast Asia’s largest economy, and a downgrade would cut its weight in global portfolios and could reduce passive inflows.
The HSC framework, plans for a higher minimum free float and stronger disclosure rules are among the reforms Indonesia has put forward. The test now is whether they are applied consistently enough to satisfy index providers.
Also read: Indonesian stocks hit six-year low on MSCI downgrade warning | Top 10 Banks in Indonesia (2026)
The next markers are the composite index exclusion on 13 November, the MSCI rebalancing at the 30 November close and MSCI’s February 2027 index review. Reuters’ report is carried by Free Malaysia Today.
