• News & Article
• MSCI Rebalancing: $1.17 Billion Potential Inflow to Indonesia. Is Your Portfolio Ready?

MSCI Rebalancing: $1.17 Billion Potential Inflow to Indonesia. Is Your Portfolio Ready?

Every few months, MSCI (the global benchmark index provider) conducts rebalancing to adjust the composition of their indices based on criteria such as market capitalisation, liquidity, and performance. These changes are not merely technical: they move billions of dollars from passive funds and ETFs around the world that track MSCI indices.

This August 2025, the official rebalancing results have been announced and will take effect from 27 August 2025. For investors, this is a moment worth paying attention to, as big money will move in line with these changes.

Who is Entering & Exiting MSCI Indonesia?
MSCI Indonesia Global Standard
Entering: DSSA, CUAN
Exiting: ADRO

MSCI Indonesia Small Cap
Entering: ADRO, AADI, KPIG, PTRO, RATU, TAPG
Exiting: MBMA, PNLF

Why Does This Matter?
It is not just about which companies are entering and exiting, but more importantly, there is a flow of funds following each company.
- Potential outflow from 3 exiting stocks: $120 million
- Potential inflow to 8 new stocks: $1.29 billion
-> Net inflow is estimated to reach $1.17 billion

This figure makes Indonesia the country with the 6th largest potential inflow among 24 other countries that are destinations for MSCI investment. In other words, there is a wave of foreign funds ready to enter, and this could be a positive catalyst for the Indonesian stock market.

Syailendra's Advantage in This Momentum
What makes us even more optimistic is that several of Syailendra's Equity Funds have weightings in stocks entering MSCI that are larger than their IHSG weighting. This means that if foreign funds flow in according to estimates, these products have the potential to receive additional support from the performance of these stocks.

Data as at 7 August 2025:
- Syailendra Alpha Focus Equity (SAFE) -> Weighting 11.6% (vs IHSG: 0.56%)
- Syailendra Equity Opportunity Fund (SEOF) -> Weighting 10.9% (vs IHSG: 0.56%)
- Syailendra Equity Platinum Fund (SEPF) -> Weighting 6.33% (vs IHSG: 1.01%)
- Syailendra Equity Momentum Fund (SEMF) -> Weighting 6.21% (vs IHSG: 1.01%)

With this positioning, investors who enter these products have the potential to benefit from the positive impact of the inflow of funds following rebalancing.

Prepare Your Portfolio Before the Funds Enter
MSCI rebalancing is a moment always watched by global market players. This year, Indonesia is receiving positive attention with significant potential inflow. For investors who want to capitalise on this momentum, gaining exposure to stocks that benefit from rebalancing, such as through Syailendra's leading equity mutual funds, could be a strategic move.