Barito Pacific is set to leave a widely followed global standard share index after an international index provider’s November review of Indonesian companies. The change is scheduled to be made after the close of trading on 30 November.
Bumi Resources Minerals is also due to leave the standard index, but its shares will move into the provider’s small-cap index. The distinction means that the two companies will not have the same treatment under the review: one is listed for deletion from the standard index without an accompanying small-cap addition, while the other is moving between the two size categories.
The review listed no Indonesian additions to the global standard index. In the small-cap review, Bumi Resources Minerals was the sole Indonesian addition and seven other Indonesian companies were listed for removal.
Those seven are Avia Avian, Ciputra Development, Dayamitra Telekomunikasi, Elang Mahkota Teknologi, Jasa Marga, Rukun Raharja and Solusi Sinergi Digital. Their removal from the small-cap index is separate from Bumi Resources Minerals’ move into that category.
When the changes take effect
The review was based on information available at a price cut-off date of 20 October. Its announced changes are due to take effect at the close of business on 30 November, with the resulting composition applying from the following trading day.
The provider has said the results may be updated before the effective date to account for corporate events, changes in relevant monitoring-board treatment or other adjustments. The published list therefore records the announced review outcome, rather than an assurance that no subsequent adjustment is possible.
Standard and small-cap indexes group shares by different size segments. They can be used as benchmarks for investment funds, including funds designed to track an index. A change in membership can require a tracking fund to adjust its holdings, but the effect depends on the benchmark and the way the fund is managed.
For Bumi Resources Minerals, removal from one size segment and entry into another are separate changes for funds following the respective indexes. Neither a transfer nor a deletion establishes what will happen to the companies’ share prices.
Separate question over market status
The company-level review comes alongside, but is not the outcome of, a broader consultation over Indonesia’s classification. In October, the index provider proposed moving its Indonesian indexes from emerging-market to standalone-market status.
That proposal remains under consultation. Market participants can submit feedback until 30 April 2027, and the provider has said it will announce a decision by the end of June 2027. The November decisions on individual constituents do not themselves reclassify Indonesia.
When launching the consultation, the provider said market participants had raised concerns about the transparency of shareholding structures and suspected coordinated trading in the Indonesian market. It also noted reforms announced by the authorities, including enhanced disclosure of shareholders with ownership above 1 per cent and a roadmap towards a minimum free float of 15 per cent. A roadmap is not the same as a completed change.
The provider said an existing freeze on certain index changes involving Indonesian securities would remain in place until further notice. It covers additions to the investable market index and upward moves between size segments, among other restrictions. The November review shows that deletions and a move into the smaller size segment can still be announced under the measures in place.
Earlier in the year, six companies were removed from the Indonesia index in May and two more in August. The latest review adds further changes to the list of constituents while leaving the separate decision on the country’s market classification unresolved.
