BREN and BRMS Added to MSCI Emerging Markets Index in November 2025 Review

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JAKARTA, Investortrust.id — Morgan Stanley Capital International (MSCI) has announced its November 2025 rebalancing for the MSCI Emerging Markets Index, adding nine new companies to its Global Standard Indexes for the next six months. The changes will take effect at the close of trading on Monday, Nov 24, 2025.

Among the largest additions are PT Barito Renewables Energy Tbk, or BREN, and PT Bumi Resources Minerals Tbk, or BRMS, which entered the MSCI Global Standard Indexes under the large-cap category. Meanwhile, PT Indofood CBP Sukses Makmur Tbk, or ICBP, and PT Kalbe Farma Tbk, or KLBF, were removed from this list, with KLBF reassigned to the MSCI Small Cap Index.

Seven other Indonesian stocks joined the MSCI Global Small Cap Index: PT Dharma Satya Nugraha Tbk (DSNG), PT Energi Mega Persada Tbk (ENRG), PT Kalbe Farma Tbk (KLBF), PT MNC Digital Entertainment Tbk (MSIN), PT Rukun Raharja Tbk (RAJA), PT Solusi Sinergi Digital Tbk (WIFI), and PT Timah Tbk (TINS). BRMS, previously in the small-cap group, was upgraded to large-cap status, while PT Selamat Sempurna Tbk (SMSM) and PT Ultra Jaya Milk Industry Tbk (ULTJ) were dropped.

Globally, other notable additions to the MSCI Emerging Markets Index by full market capitalization include Zijin Gold International and GF Securities Co H, both from China. For the MSCI Global Small Cap Indexes, MSCI added 207 stocks and deleted 224 from the MSCI ACWI Small Cap Index.

In the MSCI Global Investable Market Index (IMI), there were 199 additions and 211 deletions, while in the MSCI World All Cap Index, MSCI recorded 175 inclusions and 71 removals.

MSCI also said it will postpone index changes involving Bangladeshi equities due to ongoing market accessibility issues in the country.

Influential Benchmarks

The MSCI Emerging Markets Index is one of the world’s most influential benchmarks used by institutional investors to track the performance of large and mid-sized companies across emerging economies. Inclusion in this index often leads to automatic buying from global passive funds and exchange-traded funds (ETFs) that mirror MSCI benchmarks, increasing a stock’s liquidity and international visibility.

Meanwhile, the MSCI Global Small Cap Index tracks smaller companies with growth potential across developed and emerging markets. Although smaller in capitalization, inclusion in the small-cap index often brings exposure to specialized funds and investors seeking diversification and higher long-term returns from underrepresented markets such as Indonesia.

For Indonesian equities like BREN and BRMS, their inclusion signifies growing global investor confidence and potential capital inflows from global index-tracking funds, potentially supporting both liquidity and valuation multiples in the months ahead.

 

Foreign Investors

Data from Indonesia Stock Exchange show that foreign investors, which often uses MSCI indexes as benchmark, continue to play a dominant role in the country’s capital market.

In terms of ownership, the proportion of foreign holdings declined steadily from 49.1% in 2020 to 41.9% in September 2025, reflecting a gradual shift toward domestic investors—both institutional and retail. Over the same period, domestic institutional ownership remained relatively stable around 36–40%, while retail participation increased, indicating growing local investor confidence.

Transaction data, however, reveal that foreign investors remain highly active in trading. Their share of total transaction value fluctuated between 31% and 38% over the past five years, showing consistent engagement despite market volatility. By September 2025, foreign investors accounted for Rp5.93 trillion or 38.3% of total market transactions, a noticeable increase from 31.3% in September 2024, suggesting renewed foreign interest in Indonesian equities amid improving market sentiment.