The depreciation of the Indonesian rupiah and the list of Indonesian stocks excluded from the MSCI index were among the most popular business headlines on Wednesday, May 13. These significant developments captured the attention of investors and market observers alike, reflecting dynamic shifts within Indonesia’s financial landscape.
For a deeper understanding, here’s a comprehensive summary of these trending news stories:
Rupiah Continues to Weaken, Breaking Past Rp 17,538 per US Dollar
Indonesia’s currency, the rupiah, has once again demonstrated a notable weakening trend, reaching Rp 17,538 per US dollar on Wednesday morning (May 13) at 09:21 AM WIB. This represents a decline of 9.5 points or 0.05 percent, according to a report by Bloomberg. Myrdal Gunarto, Global Markets Economist at Maybank Indonesia, has pinpointed several pivotal factors contributing to this depreciation. These include a significant sell-off of shares by foreign investors ahead of the crucial Morgan Stanley Capital International (MSCI) announcement, escalating geopolitical tensions between the United States and Iran, and market anticipation surrounding the upcoming long Ascension Day public holiday.
Further exacerbating these pressures, Senior Deputy Governor of Bank Indonesia (BI), Destry Damayanti, highlighted the pervasive global uncertainty stemming from the Middle East conflict. This instability has not only driven up world oil prices but also intensified concerns across global economic markets. In response to these persistent challenges, Bank Indonesia has firmly reiterated its unwavering commitment to maintaining the stability of the rupiah’s exchange rate. This commitment is underpinned by a multi-pronged strategy involving interventions in the spot market, Domestic Non Deliverable Forward (DNDF) transactions, and Non Deliverable Forward (NDF) mechanisms, alongside the optimization of its monetary operations instruments.
Despite the prevailing pressures, BI notes that foreign investor confidence in domestic financial assets remains robust. This confidence is evident in the substantial foreign capital inflows, amounting to Rp 61.6 trillion, directed into State Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI) throughout April 2026. Furthermore, domestic foreign exchange liquidity is deemed adequate, with foreign currency third-party funds (DPK) witnessing a significant growth of 10.9 percent year-to-date (ytd) by the end of March 2026. Looking ahead, BI projects that the seasonal pressures on the rupiah will gradually subside, allowing the exchange rate to realign with Indonesia’s fundamental domestic economic conditions. This optimistic outlook is firmly rooted in the comprehensive data and the stable stabilization policies that the central bank has diligently implemented and will continue to pursue, aiming to mitigate market volatility and sustain Indonesia’s investment appeal.
Full List: 6 Indonesian Stocks Dropped from MSCI Index and 13 Exiting Small Cap
Morgan Stanley Capital International (MSCI), the renowned global market index compiler, has officially unveiled its updated list of Indonesian stocks that have been excluded from the May 2026 index review. These changes are slated to become effective from June 1, 2026. This decision carries significant implications for investment portfolios, particularly for fund managers whose strategies are benchmarked against MSCI indices. In total, six issuers have been removed from the main index, the MSCI Global Standard, while an additional 13 stocks have been delisted from the MSCI Global Small Cap Index.
The six prominent issuers removed from the MSCI Global Standard Index are: PT Amman Mineral Internasional Tbk (AMMN), PT Barito Renewables Energy Tbk (BREN), PT Chandra Asri Pacific Tbk (TPIA), PT Dian Swastatika Sentosa Tbk (DSSA), PT Petrindo Jaya Kreasi Tbk (CUAN), and PT Sumber Alfaria Trijaya Tbk (AMRT). Interestingly, while AMRT was removed from the Standard index, it has successfully transitioned into the MSCI Global Small Cap Index. This particular reclassification highlights a shift in categorization, likely driven by changes in market capitalization or liquidity criteria, reflecting the dynamic nature of index composition.
In a parallel move, MSCI also implemented adjustments to the MSCI Global Small Cap Index, with 13 Indonesian company shares being delisted. This extensive list includes: PT Aneka Tambang Tbk (ANTM), PT Astra Agro Lestari Tbk (AALI), PT Bank Aladin Syariah Tbk (BANK), PT Bumi Serpong Damai Tbk (BSDE), PT Dharma Satya Nusantara Tbk (DSNG), PT Industri Jamu dan Farmasi Sido Muncul Tbk (SIDO), PT Midi Utama Indonesia Tbk (MIDI), and PT Mitra Keluarga Karyasehat Tbk (MIKA). Other notable entities also removed are PT MNC Digital Entertainment Tbk (MSIN), PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), PT Pacific Strategic Financial Tbk (APIC), PT Sawit Sumbermas Sarana Tbk (SSMS), and PT Triputra Agro Persada Tbk (TAPG). These comprehensive revisions collectively signify a significant recalibration of MSCI’s index portfolio within the vibrant Indonesian capital market, influencing investment strategies and market perceptions moving forward.
Summary
The Indonesian rupiah experienced a notable weakening, reaching Rp 17,538 per US dollar on May 13. This depreciation was primarily driven by foreign investor sell-offs ahead of the MSCI announcement, escalating US-Iran tensions, and broader global uncertainty from the Middle East conflict which also affected oil prices. Bank Indonesia remains committed to maintaining rupiah stability through market interventions and monetary operations, noting robust foreign capital inflows and anticipating seasonal pressures to subside.
Separately, Morgan Stanley Capital International (MSCI) announced revisions to its index for Indonesian stocks, effective June 1, 2026. Six prominent issuers, including AMMN and BREN, were removed from the MSCI Global Standard Index, while AMRT transitioned to the Small Cap Index. Additionally, thirteen Indonesian stocks, such as ANTM, AALI, and SIDO, were delisted from the MSCI Global Small Cap Index, signifying a recalibration of MSCI’s portfolio within Indonesia.