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MSCI Index Rule Shift Could Trigger $2 Billion Indonesian Stock Sell-off

Bloomberg.com
January 19, 2026•3 days ago
MSCI Rule Shift May Spur $2 Billion Exit From Indonesian Stocks

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MSCI Inc. is considering tightening its free float definition for index inclusion. This potential rule change could lead global funds to exit Indonesian stocks, with estimates suggesting over $2 billion in withdrawals. The decision is expected by the end of January, with any changes effective in May.

Global funds may withdraw more than $2 billion from Indonesian equities in coming months if MSCI Inc. proceeds with a change to its indexing methodology, underscoring concerns about the investability of Southeast Asia’s biggest stock market. The index compiler will decide by the end of January whether to tighten its definition of free float — the number of shares available for trading and a key determinant of a stock’s weighting – following industry feedback. Any approved changes would be effective in the index provider’s May review.

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    MSCI Rule Change: $2B Indonesian Stock Exit Possible