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Jakarta — Global index provider MSCI has announced the removal of 19 Indonesian stocks from its equity benchmarks in the May 2026 Index Review, effective at the close of trading on May 29, 2026.
The decision, while technical in nature, has triggered immediate volatility in the local market, with the Jakarta Composite Index (IHSG) slipping below 6,800. Analysts warn retail investors against panic selling, stressing that the deletions are not a reflection of weakening fundamentals.
The Stocks Removed
From MSCI Global Standard Indexes (Large-Cap):
– 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)
– PT Sumber Alfaria Trijaya Tbk (AMRT) (reclassified into MSCI Global Small Cap Index)
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From MSCI Global Small Cap Indexes:
– PT Aneka Tambang Tbk (ANTM)
– PT Astra Agro Lestari Tbk (AALI)
– PT Bank Aladin Syariah Tbk (BANK)
– PT Bumi Serpong Damai Tbk (BSDE)
– PT Dharma Satya Nusantara Tbk (DSNG)
– PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO)
– PT Midi Utama Indonesia Tbk (MIDI)
– PT Mitra Keluarga Karyasehat Tbk (MIKA)
– PT MNC Digital Entertainment Tbk (MSIN)
– PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM)
– PT Pacific Strategic Financial Tbk (APIC)
– PT Sawit Sumbermas Sarana Tbk (SSMS)
– PT Triputra Agro Persada Tbk (TAPG)
Market Impact
The deletions are expected to trigger capital outflows of up to Rp 22 trillion, as passive funds tracking MSCI indexes adjust their holdings.
Mining, energy, property, and consumer sectors are among the hardest hit. The IHSG’s decline reflects investor anxiety, though analysts emphasize that the changes are driven by MSCI’s liquidity and weighting methodology, not by deteriorating company performance.
Hans Kwee, Co-Founder of PasarDana, explained that the MSCI review is a technical adjustment.
“This is not about fundamentals. Investors should not panic,” he said.
Other market observers echoed the sentiment, noting that forced selling by passive funds often exaggerates price swings, creating opportunities for long-term investors.
Nafan Aji, a market strategist, added that retail investors should focus on fundamentals and earnings strength rather than reacting emotionally. “Volatility can be an entry point for accumulation,” he noted.
The MSCI decision has reignited calls for Indonesia’s capital market regulators OJK, BEI, KPEI, and KSEI to strengthen transparency and oversight.
Analysts argue that clearer ownership structures and stricter monitoring of affiliate transactions could help Indonesia emulate India’s success in attracting foreign capital.
This MSCI rebalancing underscores the tension between technical index adjustments and market psychology.
For retail investors, the message is clear avoid panic, stay focused on fundamentals, and consider volatility as a window for strategic accumulation.
