Barito Renewables, Indonesia's Barito Renewables, falls after FTSE Russell exclusion

Barito Renewables Energy, a geothermal energy company in Indonesia, plunged to its daily limit of 20 percent on Friday after global index provider FTSE Russell announced that it would remove this giant from its indexes due to "high shareholder concentration".

Barito Renewables will be added as planned to the FTSE Global All Cap Index and its associated gauges at the beginning of the next session.

FTSE Russell reported that four shareholders own 97% of Barito Renewables total shares.

Barito Pacific is the majority owner of the company, which was spun-off late last year. Barito Pacific is owned by billionaire Prajogo Pangastu, who owns 71%.

Green Era Energy of Singapore, an investment arm for renewable energy of the Pangestu Family, owns 23,6% of Barito Renewables. Jupiter Tiger Holdings, Prime Hill Fund and other investors own approximately 4.4% of Barito Renewables.

Christine Natasya is an equity research analyst with Bahana Sekuritas. She said that the FTSE decision had triggered panic-selling among investors.

Barito Renewables' stock fell by 20% on Friday to its lowest level since mid-August, its worst day since January.

Pangestu, which owns 85% of Petrindo Jaya Kreasi's shares, suffered a loss of nearly 20%, before recovering a portion.

Chandra Asri Pacific is another Pangestu owned company that fell by around 9%.

This weighed down on the Indonesian benchmark. It fell up to 2% in the session, marking its worst day since the beginning of August. Last trading was 1.4% lower at a new one-week low.

Barito Renewables' stock has been extremely volatile since its IPO in October of last year. The stock has risen more than 1,100% in the nine months following its debut on the market, with two periods of declines greater than 50%.

(source: Reuters)