Two announced changes to Indonesian stocks will take effect after Nov. 30, as the country faces separate scrutiny of its emerging-market status and index-tracking funds face required sales, Reuters reported.
MSCI announced the changes Nov. 11. Barito Pacific will leave the provider’s global standard index, while Bumi Resources Minerals will transfer from that tier to a small-cap index. The changes are scheduled to take effect after trading closes Nov. 30.
Reuters reported funds that track the affected indexes will have to sell the shares. MSCI’s Indonesia index had 18 companies at the start of 2026. The provider removed six in May and two in August; after Barito Pacific’s removal, the index will have seven constituents, Reuters reported.
The company-level changes are separate from MSCI’s consultation on Indonesia’s market classification. The index provider has proposed moving its Indonesia indexes out of emerging-market status and into a standalone category, a change it has not adopted. The separate proposal to reclassify Indonesia’s indexes follows earlier warnings about transparency and trading.
MSCI cited insufficient progress on ownership transparency and concerns about coordinated trading. In June, it said a lack of progress by its November review could prompt a Frontier Market consultation. In October, it proposed standalone status instead, saying a Frontier Market classification would not reflect the depth of its concerns.
Indonesian authorities have tightened disclosure requirements and laid out plans to raise minimum free floats. The regulator also announced sanctions in October linked to alleged manipulation, Reuters reported.
Reuters reported Indonesia’s benchmark stock index had fallen more than 40% in 2026, while foreign investors had withdrawn $5.4 billion from local equities this year. Indonesia has been part of MSCI’s emerging-market group since 1989. MSCI’s website lists more than $1.8 trillion in assets benchmarked to its emerging-market indexes, Reuters reported.
Feedback on the proposal remains open through April 30, 2027. MSCI plans to announce a decision on or before June 30, 2027.
