The Indonesian Financial Services Authority (OJK) stated on Wednesday that there was no panic selling following MSCI Inc's removal of six companies from its MSCI Indonesia Global Standard Index, adding that it remains committed to stock market reforms.

The index provider announced on Tuesday that, after completing its quarterly review, it had removed Amman Mineral Internasional, Chandra Asri Pacific, Dian Swastatika Sentosa, Barito Renewables, Petrindo Jaya Kreasi, and Sumber Alfaria Trijaya from the MSCI Indonesia Index.

This move caused the Jakarta Composite Index to drop by up to 1.92% on Wednesday, hitting a more than one-year low, with most of the affected companies seeing their share prices fall by over 10%.

The sole exception was Sumber Alfaria Trijaya, whose shares declined by 2.47%, as the company was transferred to the MSCI Indonesia Small Cap Index.

The adjustment stems from a statement issued by MSCI last month, indicating it would extend its review of the Indonesian stock market until June to assess reform measures announced by the Southeast Asian nation. Previously, a warning from the index provider in January had triggered a market plunge and foreign investor exodus, prompting subsequent government action.

Hasan Fawsi, Head of Capital Market Supervision at OJK, stated that OJK remains dedicated to advancing reforms and will provide high-quality stocks in the future, including those eligible for inclusion in global indices.

He noted that Wednesday's decline was viewed as "within normal range," and the volume and frequency of stock trading indicated no panic selling occurred.