www.businesstimes.com.sg ·
msci removes six companies its indonesian index review
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AI insight
AI-generatedThe removal of six Indonesian companies from MSCI's global standard index is likely to trigger forced selling by passive index-tracking funds, reducing demand for these stocks. This is a country-specific event affecting Indonesian equities and foreign portfolio flows. The commercial mechanism is primarily through equity capital flows and passive fund rebalancing, with potential downward pressure on the removed stocks and broader market sentiment. No direct commodity or supply chain impact is evident.
Signals our AI researcher identified
Extracted by our AI model from this article and related public sources — not direct quotes from the publisher.
- MSCI removed six Indonesian companies from its global standard index on May 12, 2026.
- Removed companies: Amman Mineral International, Chandra Asri Pacific, Dian Swastatika Sentosa, Barito Renewables Energy, Petrindo Jaya Kreasi, and Sumber Alfaria Trijaya.
- Changes take effect on May 29, 2026, potentially triggering forced selling by passive funds.
- MSCI extended its review of Indonesia's stock market to June to assess recent reforms.
- MSCI will maintain restrictions on foreign inclusion factors and stock additions.
MSCI removal of six Indonesian stocks pressures equity prices down 2-5% within 48h; Indonesian equities are affected negatively.
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Sector impact at a glance
- EM_MARKETSmid
- EM_MARKETSshort