MSCI removes Barito Pacific from global indexes in latest reshuffle

MSCI Inc., the influential index provider, has initiated changes to its equity indexes that will see major Indonesian producer Barito Pacific delisted from its widely-tracked Global Standard Index. The move marks a significant shift in the composition of the index, which is closely monitored by asset managers and investment funds globally.

The index revision will take effect following MSCI's standard reconstitution timeline. Barito Pacific, which has substantial operations in coal and palm oil sectors, will be removed entirely from the Global Standard Index, reflecting a reassessment of its suitability for inclusion among the index's holdings.

In a related development, fellow Indonesian resource company Bumi Resources Minerals will be downgraded to MSCI's Small Cap Index, a tier below the Global Standard Index. This change also reflects the index provider's periodic review of its constituent companies and their market characteristics.

MSCI conducts regular reviews of its indexes to maintain appropriate weightings and ensure constituents meet established criteria for inclusion. Such changes are typically driven by factors including market capitalization shifts, liquidity assessments, and regulatory considerations. The announcements align with MSCI's established practice of communicating index changes in advance to allow market participants time to prepare for transitions.