The weakening of the Indonesian rupiah and the latest reshuffle of Indonesian stocks in the MSCI index topped the business headlines this Wednesday (May 13). Below is a summary of these significant market developments.
Rupiah Remains Under Pressure, Sliding to IDR 17,538 per US Dollar
The Indonesian rupiah continued its downward trend, weakening to IDR 17,538 against the US dollar as of 09:21 WIB on Wednesday (May 13). According to Bloomberg data, this represents a decline of 9.5 points or 0.05 percent. Myrdal Gunarto, a Global Markets Economist at Maybank Indonesia, attributes this depreciation to several key factors, including foreign investors offloading shares ahead of the MSCI index announcement, ongoing geopolitical tensions between the US and Iran, and market caution leading into the long holiday weekend for Ascension Day.
Bank Indonesia (BI) Senior Deputy Governor Destry Damayanti added that global uncertainty stemming from Middle Eastern conflicts has further pressured the economy by driving up global oil prices and heightening concerns over global economic stability.
In response to these market pressures, BI has reaffirmed its commitment to maintaining currency stability. The central bank is actively utilizing market interventions in the spot market, Domestic Non-Deliverable Forward (DNDF), and Non-Deliverable Forward (NDF) instruments, alongside optimizing its monetary operations.
Despite these challenges, BI remains confident in the resilience of Indonesia’s financial assets. Foreign capital inflows into Government Securities (SBN) and Bank Indonesia Rupiah Securities (SRBI) reached IDR 61.6 trillion throughout April 2026. Furthermore, domestic foreign exchange liquidity remains robust, with foreign currency third-party funds (DPK) growing by 10.9 percent year-to-date as of the end of March 2026.
Looking ahead, BI projects that seasonal pressures on the rupiah will eventually subside, allowing the currency to realign with domestic economic fundamentals. This outlook is supported by data and ongoing stabilization policies designed to mitigate market volatility and sustain investor interest in the Indonesian market.
Complete List: 6 Indonesian Stocks Excluded from MSCI Global Standard and 13 from Small Cap Index
Global index provider Morgan Stanley Capital International (MSCI) has announced the results of its May 2026 index review, with changes taking effect on June 1, 2026. This rebalancing has significantly impacted investment portfolios, particularly for fund managers who track MSCI benchmarks. A total of 6 companies have been removed from the MSCI Global Standard Index, while 13 others were dropped from the MSCI Global Small Cap Index.
The six firms 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). Notably, while AMRT was removed from the Standard Index, it was transitioned into the MSCI Global Small Cap Index, highlighting a strategic shift in classification based on market capitalization and liquidity criteria.
Concurrently, MSCI updated the MSCI Global Small Cap Index by excluding 13 Indonesian companies. This 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). Rounding out the removals 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), marking a major portfolio recalibration for the Indonesian capital market.
Summary
The Indonesian rupiah has weakened to IDR 17,538 per US dollar, driven by factors such as geopolitical tensions, foreign investor sell-offs, and rising global oil prices. Bank Indonesia is actively intervening in the market through spot transactions and forward instruments to maintain currency stability. Despite current volatility, the central bank remains optimistic about the resilience of Indonesia’s financial assets, citing robust capital inflows and strong foreign exchange liquidity.
In a separate development, MSCI announced a major rebalancing of its indices, resulting in the exclusion of six companies from the MSCI Global Standard Index and 13 firms from the MSCI Global Small Cap Index. Major companies removed from the Standard Index include AMMN, BREN, and TPIA, while several others like ANTM and BSDE were dropped from the Small Cap Index. These changes, which take effect on June 1, 2026, reflect a significant portfolio recalibration for investors tracking these global benchmarks.