JAKARTA — MSCI removed 19 Indonesian companies from its Global Standard and Small Cap indices in its Semi-Annual Index Review, with no new additions, effective after the market closed on May 29, 2026. Indonesia's Financial Services Authority had initially projected two or three deletions.

Six companies were removed from the MSCI Global Standard Index, including Amman Mineral Internasional, Chandra Asri Pacific and Petrindo Jaya Kreasi. Thirteen companies were removed from the MSCI Small Cap Index, including Aneka Tambang, Bumi Serpong Damai and Industri Jamu dan Farmasi Sido Muncul. Sumber Alfaria Trijaya was downgraded from the Global Standard Index to the Small Cap Index. Prior to the May 2026 review, MSCI had imposed an interim freeze on adding new Indonesian companies to its indices.

Foreign capital outflows tied to the rebalancing were estimated at as much as Rp31.5 trillion (US$1.8 billion), with research institutions placing MSCI-related passive outflows between Rp28 trillion and Rp31.5 trillion. The Jakarta Composite Index fell as much as 3.76% to 6,470 shortly after the announcement. Chandra Asri Pacific's stock price fell nearly 15%. The rupiah weakened beyond Rp17,700 per U.S. dollar, its lowest level on record, and Indonesia's equity markets recorded annual losses of 25.17% in 2026.

MSCI and FTSE Russell have warned that high shareholding concentration distorts price discovery mechanisms. Barito Renewables Energy's controlling shareholders held 97.31% of total shares, leaving a public free float of 2.69%. Insider ownership at Dian Swastatika Sentosa stood at 95.76%. Regulators are considering raising the minimum public free float threshold for Indonesian companies from 7.5% to 15%.

Several of the removed companies had reported recent financial gains. Aneka Tambang's net profit rose to Rp3.41 trillion in the first quarter of 2026 from Rp2.13 trillion a year earlier, with an EBITDA margin of 16.3%. Chandra Asri Pacific generated quarterly EBITDA of US$421 million. Bumi Serpong Damai had a price-to-book ratio of 0.36 and a price-to-earnings ratio of 6.11 at the time of the review.