MSCI says Indonesia’s Barito Pacific will be removed from its indexes

Detailed summary

MSCI says it will remove Barito Pacific from its indexes, adding pressure to Indonesia’s markets amid downgrade fears. Read more at straitstimes.com.

The latest setback comes a month after MSCI warned Indonesian stocks could be removed from its indexes next year and the market relegated to “standalone” status.

SINGAPORE/BENGALURU - Global index provider MSCI will remove one Indonesian company from its indexes, it said on Nov 9, dealing a blow to the country’s efforts to avoid a downgrade and retain its emerging-market status.

The latest setback comes a month after MSCI warned Indonesian stocks could be removed from its indexes next year and the market relegated to “standalone” status, a much harsher fate than the one the index provider first threatened in January.

The deletions will force funds that track its indexes to sell the shares, and take effect after the close of trading on Nov 30.

Barito Pacific will be removed from MSCI’s global standard index, while Bumi Resources Minerals will be moved from that index to the small cap index.

MSCI Indonesia index currently has nine firms after the index provider culled six companies in May and two more in August.

The threat of a downgrade has cast a shadow over Indonesian markets, with the benchmark index down over 40% in 2026, making it the world’s worst-performing major stock market.

In October, MSCI cited Indonesia’s failure to improve ownership transparency and curb coordinated trading, turning what had been a downgrade risk to “frontier” market status into a full-blown crisis of investor confidence.

The Indonesian authorities have spent much of the year trying to address MSCI’s concerns, tightening disclosure requirements and laying out plans to raise minimum free floats.

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