Gotrade News - MSCI removed 19 Indonesian stocks from its benchmark indexes on May 13, 2026, effective June 1. Six large caps left the Global Standard Index, while 13 names exited the Small Cap Index.
The rebalancing may force passive funds tracking MSCI to sell deleted names, pressuring liquidity in Jakarta. US investors holding Indonesia-exposed ETFs could see near-term volatility before flows stabilize after June 1.
Key Takeaways
- MSCI deleted 19 Indonesian stocks, with six large caps cut from the Global Standard Index.
- Potential foreign outflow estimates range from Rp 22 trillion to Rp 34.7 trillion across brokerages.
- IHSG opened down 1.33% at 6,767.87, with CUAN, ANTM, and BUMI leading selling pressure.
Index Deletions And Outflow Estimates
According to Kompas, six names exited the Global Standard Index. These include Amman Mineral, Barito Renewables, Chandra Asri, Dian Swastatika, Petrindo Jaya Kreasi, and Sumber Alfaria.
Nafan Aji Gusta of Mirae Asset Sekuritas said passive funds tracking MSCI must sell deleted names to rebalance portfolios. The potential foreign outflow is estimated at Rp 22 trillion, or roughly US$1.3 billion at current rates.
Indonesia remains inside MSCI Emerging Markets, a category tracked by funds like iShares MSCI Emerging Markets ETF (EEM). However, the index provider is reviewing foreign ownership limits in the country.
Brokerage outflow estimates diverge widely across the Street. Joeliardi Sunendar pegs the range at Rp 27.8 to 31 trillion, while CGS International sees Rp 31.5 trillion and Citibank flags a worst case of Rp 34.7 trillion.
Market Reaction And Technical Levels
As reported by Katadata, the IHSG opened at 6,767.87, sliding 91.03 points or 1.33%. Volume reached 520 million shares with traded value of Rp 290.31 billion at the bell.
Elandry Pratama of Panin Sekuritas said large-cap deletions will trigger forced selling from passive global funds and ETFs. Outflows could total hundreds of millions of dollars, with the IHSG potentially testing 6,700 in coming sessions.
Country-focused investors often access Indonesia via the iShares MSCI Indonesia ETF (EIDO), which directly tracks the MSCI Indonesia Index. Rebalancing flows in EIDO will mirror the underlying index changes effective June 1.
Per Kabar Bursa, Kiwoom Sekuritas Research views the panic as overdone and recommends a HOLD and wait-and-see stance. Initial scenarios above Rp 50 trillion in outflows are seen as unrealistic by the broker.
Kiwoom flagged IHSG technical support at 6,762 to 6,745, with deeper levels at 6,538 and 6,092. Resistance sits at 6,980 to 7,015, framing the near-term range traders should monitor closely.
For investors tracking the index provider itself, MSCI Inc. (MSCI) earns recurring fees from passive funds licensing its benchmarks. Rebalancings rarely affect MSCI revenue, but they reshape capital flows across emerging market portfolios.
Heaviest selling on the day clustered around CUAN, ANTM, and BUMI as traders front-ran expected index fund liquidations. Market participants will watch closing prints on May 30 for confirmation of the rebalance impact.
