MSCI says Indonesia’s Barito Pacific will be removed from its indexes

MSCI, the global index provider, has announced that Indonesian company Barito Pacific will be removed from its indexes on November 30, following the closing of trading. This move will compel funds that follow the indices to sell their holdings in the affected shares. The decision comes after MSCI warned Indonesia that its stocks could be removed from the indexes next year, potentially relegating the market to standalone status, a more severe outcome than the one initially feared in January.

Barito Pacific will be taken out of MSCI's global standard index, while Bumi Resources Minerals will be downgraded from the global standard index to the small cap index. Currently, the MSCI Indonesia index includes nine companies, following the removal of six firms in May and two more in August.