Fri Sep 20 06:42:44 UTC 2024: ## Indonesian Power Giant Barito Renewables Energy Plunges After Index Exclusion
**Jakarta, Indonesia** – Shares of PT Barito Renewables Energy, Indonesia’s largest company by market value, tumbled by the daily limit on Tuesday after FTSE Russell announced it would remove the company from its indexes. This decision comes just a day after the anticipated entry date and cites “high shareholder concentration” as the reason. Four shareholders control a staggering 97% of the company’s equity, raising concerns about limited liquidity and market volatility.
The index compiler’s move is the latest in a series of events surrounding Barito Renewables, whose shares have experienced extreme volatility since its public market listing in October 2023. This volatility even led to the company’s inclusion on a stock exchange watchlist for volatile and troubled companies earlier this year.
Fund manager Mohit Mirpuri of SGMC Capital Pte expressed concerns about the limited liquidity and volatility of the stock, suggesting that Barito Renewables should increase its free float to unlock potential and stabilize its share price.
The exclusion from the FTSE indexes has raised further concerns about investing in emerging markets, where sudden gains and slumps are not uncommon. While investors remain hopeful for a potential inclusion in MSCI Inc. indexes later this year, the recent events have dampened the celebratory sentiment surrounding Indonesia’s stock market.
Barito Renewables shares have surged over 1,400% since their listing, but have also experienced sharp declines, highlighting the uncertainty surrounding the company. The stock’s removal from FTSE indexes underscores the risks associated with concentrated ownership and limited liquidity in emerging markets.
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