The index provider announced on Wednesday that Indonesian ride-hailing giant GoTo (Gojek Tokopedia) will be removed from the MSCI Indonesia Index at the end of this month, delivering another blow to the country's stock market.

Once valued at approximately $29 billion and ranked among the most valuable companies in Indonesia, GoTo's market capitalization has now fallen to $3.2 billion. Since mid-May, its shares have been trading at around 50 rupiah, or less than one US cent. On the exchange's main trading board, 50 rupiah represents the minimum trading price.

MSCI had suspended adjustments to GoTo's index inclusion in late May due to concerns that the company's low liquidity could make it difficult for index-tracking investors to execute sufficient trades. FTSE Russell removed GoTo from its Global Equity Index Series (GEIS) mid-cap index in June, after the company moved to the development board of the Indonesia Stock Exchange, which did not meet FTSE Russell's eligibility criteria for GEIS.

"This is a technical decision. It is driven by our shares maintaining a floor price of 50 rupiah and consistently low trading volumes at that level—this is not a reflection of the company's performance," GoTo stated in an email response to media regarding the MSCI decision. "Index decisions are reviewed periodically, and we will continue to maintain an active dialogue with MSCI."

In its August index review, MSCI added 55 companies to its "Global Market Index" and removed 92 firms.