30 August 2026 (closed)
Jakarta Composite Index (6,518.12) -3.63 -0.06%
GoTo Dropped from Global Standard Index as MSCI Rebalances Indonesian Equities
After the stern warning given earlier as well as freezing all weight increases and new additions for Indonesian stocks in their indices, global index provider MSCI announced a revision to their indices on Thursday morning (13 August 2026). The outcome was far from positive for Indonesian equities.
Key concerns of MSCI involve the market accessibility and transparency in Indonesia, specifically unclear share ownership structures and suspected wash trading (this is an illegal strategy involving the same trader buying and selling the security to portray false market activity).
One of the big Indonesian stocks that felt the consequences was tech company GoTo Gojek Tokopedia (GOTO). This company was removed from the MSCI Global Standard Index. Meanwhile, agribusiness Charoen Pokphand Indonesia (CPIN) was demoted from that same index to the MSCI Global Small Cap Index.
Furthermore, a total of nine Indonesian stocks were removed from the MSCI Global Small Cap Index, namely Bank Jago (ARTO), Bukalapak.com (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).
MSCI stated that all changes from the August 2026 Index Review will be imposed after the closing of trading on 31 August 2026. These changes are obviously on investors' radar as many use these MSCI indices as portfolio benchmarks.
For GoTo Gojek Tokopedia, specifically, the MSCI decision adds further pressure, coming after the company's stock had already faced trading liquidity issues. Factors behind its removal involve: (1) low stock liquidity and trading volume (making it difficult for passive index-tracking funds to trade the stock in sufficient sizes without incurring significant tracking error or market impact), and (2) the company being stuck at the IDR 50 minimum floor of the Indonesia Stock Exchange since May 2026 (creating potential replication issues for passive global funds).
The news had a negative impact on Indonesia's benchmark stock index (Jakarta Composite Index). This index fell 1.18 percent in the first trading session on Thursday. However, amid broader market volatility, the decline remains relatively restrained, largely because much of the negative fallout had already been priced in following MSCI's initial warnings in January 2026.