MSCI Removes Two Indonesian Stocks, Risks Rp 1.2tn Outflow

Detailed summary

Jakarta. The removal of Barito Pacific (IDX: BRPT) and Bumi Resources Minerals (BRMS) from MSCI's Global Standard Index could trigger up to Rp 1.2 trillion ($65.82 million) in…

Jakarta. The removal of Barito Pacific (IDX: BRPT) and Bumi Resources Minerals (BRMS) from MSCI's Global Standard Index could trigger up to Rp 1.2 trillion ($65.82 million) in passive fund outflows, as Indonesia loses two constituents from the global benchmark.

MSCI announced the changes as part of its November 2026 index review, with all adjustments scheduled to take effect after the market closes on Nov. 30. BRMS will be added to the MSCI Small Cap Index.

Kiwoom Sekuritas Indonesia Head of Research Liza Camelia Suryanata estimated that BRMS' move to the Small Cap Index could reduce Indonesia's weighting in the MSCI Emerging Markets Index by around 0.9 basis points, potentially triggering Rp 300 billion in net passive selling.

The removal of BRPT could add another Rp 900 billion in estimated outflows, bringing the potential total to Rp 1.2 trillion.

"Based on the scenarios outlined above, we may see outflows today from both stocks, from small-cap deletions, or simply driven by the sentiment surrounding the changes," Liza said.

According to Mirae Asset Sekuritas Indonesia, seven Indonesian stocks will remain in the MSCI Global Standard Index: 1. Bank Central Asia (BBCA) 2. Bank Rakyat Indonesia (BBRI) 3. Bank Mandiri (BMRI) 4. Telkom Indonesia (TLKM) 5. Astra International (ASII) 6. Bank Negara Indonesia (BBNI) 7. United Tractors (UNTR)

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