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

Résumé détaillé

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. Neither firm immediately…

SINGAPORE/BENGALURU/JAKARTA - Global index provider MSCI will remove one Indonesian company from its indexes, it said on Wednesday, 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 November 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. Neither firm immediately responded to requests for comment.

Once the removal takes effect, MSCI's Indonesia index will be left with seven companies after the index provider culled six firms in May and two more in August. At the start of the year, the Indonesia index had 18 firms in it.

Barito Pacific, a company with interests in petrochemicals, energy and infrastructure, is controlled by business magnate and billionaire Prajogo Pangestu.

In May, MSCI removed three firms from its Indonesia index in which Prajogo has controlling stakes: Chandra Asri Pacific , Barito Renewables Energy and Petrindo Jaya Kreasi.

Indonesia's benchmark stock index was up 1.3% at 0340 GMT, while the rupiah slid 0.6% to hit a new all-time low of 18,248 a dollar.

The currency was affected by US monetary policy expectations, concerns about MSCI's decision on Indonesian stocks, domestic economic issues and higher year-end demand for FX, Bank Indonesia said in a statement on Thursday.

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