MSCI Drops 10 Indonesian Stocks in August Review, Maintains Equity Freeze

Global index provider Morgan Stanley Capital International (MSCI) has dropped 10 Indonesian stocks from its August 2026 Index Review, further maintaining its freeze on Indonesian equities. This means no new stocks will be added to the index during this review period.

Tech giant PT GoTo Gojek Tokopedia (GOTO) was removed from the MSCI Global Standard Index. MSCI cited "potential index replicability issues related to its very low liquidity" as the reason, noting the stock had been trading at the minimum price of 50 Indonesian Rupiah on the Indonesia Stock Exchange since May 13, 2026. Agribusiness firm PT Charoen Pokphand Indonesia (CPIN) was also removed from the Global Standard Index but was reclassified into the MSCI Global Small Cap Index.

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This treatment applies due to the potential index replicability issues related to its very low liquidity resulting from trading at the minimum tradeable price of 50 IDR on the Indonesia Stock Exchange since the close of May 13, 2026.

In addition to these changes, nine other Indonesian equities were removed from the MSCI Global Small Cap Index. These include Bank Jago (ARTO), Bukalapak (BUKA), Essa Industries Indonesia (ESSA), MD Entertainment (FILM), Medikaloka Hermina (HEAL), MNC Tourism Indonesia (KPIG), Raharja Energi Cepu (RATU), Semen Indonesia (SMGR), and Transcoal Pacific (TCPI). The adjustments are set to take effect after the market close on August 31, 2026, with full implementation in early September.

The Jakarta Composite Index (JCI) slipped 1.30 percent on Thursday morning trading, reflecting sell-offs following the MSCI announcement. Investors are evaluating the potential impact on foreign capital flows and upcoming index rebalancings. The Financial Services Authority (OJK) had previously expressed hope that MSCI would lift its freeze, citing progress in capital market transparency and integrity reforms. However, MSCI's ongoing restrictions, which include freezing increases in the Foreign Inclusion Factor and Number of Shares, and blocking new constituents, remain in place.

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We certainly hope that given our progress on capital market transparency and integrity reforms, global index providers will soon reevaluate our status and lift these index freezes on Indonesian equities.