MSCI will remove Barito Pacific from its global standard index after trading closes on November 30, while Bumi Resources Minerals will move to the small cap index. The changes come as MSCI considers whether to downgrade Indonesia from emerging-market status.
MSCI said it will remove Barito Pacific from its global standard index after the close of trading on November 30. Bumi Resources Minerals will move from that index to the small cap index. The deletions will require funds that track the indexes to sell the shares.
MSCI has warned that Indonesian stocks could be removed from its indexes next year and the market relegated to standalone status, following concerns about ownership transparency and coordinated trading. It is seeking feedback on a reclassification proposal until April 30, 2027, and plans to announce a decision on or before June 30, 2027.
Foreign investors have pulled $5.4 billion from Indonesian equities this year. Goldman Sachs estimated that removing the country's stocks from MSCI indexes could spur $5.6 billion in passive outflows. Indonesia's benchmark index is down more than 40% this year.
