Jakarta. Some of Indonesia’s biggest blue-chip stocks are at risk of being downgraded or even removed from Morgan Stanley Capital International (MSCI) global indexes in a closely watched quarterly review this week.

The market is awaiting MSCI’s quarterly index review announcement on Tuesday, which could trigger significant portfolio adjustments by global institutional investors tracking the benchmark indexes.

According to Mirae Asset Sekuritas, several heavyweight Indonesian stocks may face reduced weightings in the MSCI Indonesia Index, including major lenders Bank Central Asia (BBCA), Bank Rakyat Indonesia (BBRI), Bank Mandiri (BMRI), and Bank Negara Indonesia (BBNI), as well as Telkom Indonesia (TLKM), Astra International (ASII), Barito Pacific (BRPT), Bumi Resources Minerals (BRMS), GoTo Gojek Tokopedia (GOTO), and United Tractors (UNTR).

Mirae also warned that two companies, Barito Renewables Energy (BREN) and Dian Swastatika Sentosa (DSSA), could be removed entirely from MSCI’s global indexes due to concerns over high shareholding concentration.

MSCI is scheduled to publish the results of its latest review on May 12, while the index rebalancing will take effect on May 29. The review includes the MSCI Global Standard Indexes, Global Small Cap Indexes, Micro Cap Indexes, and Frontier Markets Small Cap Indexes.

The Financial Services Authority (OJK) urged investors to remain calm ahead of the announcement, saying any short-term volatility is part of broader reforms aimed at strengthening the integrity and fundamentals of the country’s capital market.

“We are making improvements, and naturally there may be stocks that are adjusted. This is part of index rebalancing,” OJK Chairwoman Friderica Widyasari Dewi told reporters at the Indonesia Stock Exchange on Monday.

Fridericasl said MSCI had already imposed a freeze on new inclusions, meaning no new Indonesian stocks would enter the indexes in this review cycle, although existing constituents could still be removed.

“Perhaps it feels uncomfortable in the short term, but in the long run our capital market will become healthier. These reforms are intended to strengthen market fundamentals,” she said.

She also cautioned against excessive panic over the possible changes, arguing that the adjustments reflect ongoing efforts by regulators to improve governance, law enforcement, and market quality.

Beyond possible weight cuts, MSCI is also expected to downgrade several Indonesian stocks — including Amman Mineral Internasional (AMMN), Chandra Asri Pacific (TPIA), Charoen Pokphand Indonesia (CPIN), Petrindo Jaya Kreasi (CUAN), and Sumber Alfaria Trijaya (AMRT) — from the Global Standard Indexes to the Small Cap Indexes.

Friderica said Indonesia’s broader economic fundamentals remain solid, citing stable economic growth and ongoing reforms in corporate governance and capital market oversight.

She added that regulators are continuing efforts to deepen domestic market participation by expanding the local investor base, which now stands at around 26 million investors.

“Twenty years ago, when global shocks happened, everyone panicked because the market was dominated by foreign investors,” she said. “Now, with more domestic retail and institutional investors, our market is becoming more resilient.”

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