GoTo Gojek Tokopedia Ousted from MSCI Index Amid Market Struggles

GoTo Gojek Tokopedia, once valued at $29 billion, will be removed from MSCI's Indonesia index due to concerns over the company's low liquidity. This follows its exclusion from the FTSE Russell global equity index, marking significant challenges for one of Indonesia's leading ride-hailing firms.

Indonesian ride-hailing titan GoTo Gojek Tokopedia is set to be ousted from MSCI's Indonesia index by the month's end, as confirmed by the index provider on Wednesday. This removal marks another blow to the country's equity markets.

GoTo, previously valued at around $29 billion and ranked among Indonesia's most prestigious firms, has seen its market capitalization plummet to $3.2 billion. Its stock price has stagnated at 50 rupiah—below one U.S. cent—since mid-May, the minimum trading price on the exchange's main boards.

In late May, MSCI paused changes to GoTo in its indexes, citing worries about the company's low liquidity, which could hinder index-tracking investors from adequately trading the stock. Subsequently, in June, FTSE Russell removed GoTo from its global equity index series mid-cap category after GoTo appeared on the Indonesian stock exchange's development board, which does not meet the eligibility criteria for FTSE Russell's GEIS.