Jakarta – Shares of Barito Renewables Energy Tbk (BREN), one of Indonesia’s prominent renewable energy plays, will be removed from the MSCI Global Standard Index following the latest index review by Morgan Stanley Capital International, according to idxchannel.com on Wednesday, May 13.
In its May 2026 rebalancing announcement, MSCI said BREN is among six Indonesian stocks to be excluded from the index, with the changes taking effect after the close of trading on May 29. The move reduces Indonesia’s representation in the benchmark from 17 to 11 companies.
BREN, along with Dian Swastatika Sentosa Tbk (DSSA), a Sinarmas subsidiary, was removed due to high shareholding concentration, a factor that can limit the availability of shares for public trading and reduce liquidity. Other companies exiting the index include Amman Mineral International (AMMN), Chandra Asri Pacific (TPIA), Petrindo Jaya Kreasi (CUAN), and Sumber Alfaria Trijaya (AMRT), with some affected by free float issues or reclassification.
The exclusion marks a setback for BREN, which has been viewed by investors as a key proxy for Indonesia’s growing renewable energy sector, particularly through its geothermal and clean energy assets. Index inclusion typically supports foreign investor access, meaning the removal could weigh on passive fund flows tracking MSCI benchmarks.
Barito Pacific Tbk, the majority owner and direct controller of BREN, remains in the index, having met MSCI’s free float and ownership requirements. (nsh)
Banner photo: Image generated by OpenAI’s DALL·E via ChatGPT (2024)
