Ride-Hailing Giant GoTo Removed from MSCI's Indonesia Index

Indonesian ride-hailing company GoTo Gojek Tokopedia will be removed from MSCI's Indonesia index due to low liquidity concerns. Previously valued at $29 billion, its market value has dropped significantly. The company remains optimistic about future index reviews, while MSCI continues to adjust its global equity listings.

Indonesian ride-hailing behemoth GoTo Gojek Tokopedia has faced a significant blow as it is set to be excluded from MSCI's Indonesia index by month's end. The decision stems from persistent low trading volumes, reflecting challenges within the nation's equity markets.

Once prized at an impressive $29 billion market cap, GoTo's value has plummeted to just $3.2 billion, with its shares stagnating at the minimum trading price of 50 rupiah since May. MSCI's concern over low liquidity has made index-tracking investors wary, echoing a similar move by FTSE Russell earlier this year.

In response, GoTo emphasized the exclusion as a technical matter driven by stock price rather than business performance. The company remains in open communication with MSCI, anticipating future index evaluations. Meanwhile, MSCI's recent review has added and deleted several entities, reshaping its global investment outlook.