Indonesia Purges Concentrated Stocks from Jakarta Index to Avert MSCI Standalone Downgrade
Indonesia’s stock exchange will remove companies with highly concentrated share ownership from the Jakarta Composite Index to address MSCI’s concerns over market investability. This move aims to prevent a downgrade to 'standalone market' status, which could trigger billions in capital outflows. The affected firms represent nearly 18% of the index’s value, including major entities like Dian Swastatika Sentosa and Barito Renewables Energy.