Sept 20 (Reuters) - Indonesia's Barito Renewables Energy (BREN.JK) , opens new tab plunged by its daily limit of 20% on Friday after global index provider FTSE Russell said it would remove , opens new tab the geothermal energy giant from its indexes because of "high shareholder concentration".

Barito Renewables, Indonesia's biggest company by market value, will be added to the FTSE Global All Cap Index series and associated gauges on Sept. 23, as planned, but will be removed at the start of the next session.

Four shareholders control 97% of Barito Renewables' total shares, FTSE Russell said.

The company is majority-owned by Barito Pacific (BRPT.JK) , opens new tab, from which it was spun off late last year. Billionaire Prajogo Pangestu owns around 71% of Barito Pacific.

Singapore-based Green Era Energy, a renewable energy investment arm of the Pangestu family, owns 23.6% of Barito Renewables. Jupiter Tiger Holdings and Prime Hill Fund own about 4.4% each.

"This decision from FTSE has triggered panic selling among investors, particularly in Prajogo Pangestu's companies, which led to a decline in the Indonesia Stock Exchange Composite Index," Christine Natasya, equity research analyst at Bahana Sekuritas, said.

Barito Renewables fell 20% to its lowest since mid-August on Friday, marking its worst day since early January.

Thermal coal miner Petrindo Jaya Kreasi (CUAN.JK) , opens new tab, in which Pangestu owns an 85% stake, lost nearly 20% before recovering some of the losses.

Chandra Asri Pacific (TPIA.JK) , opens new tab, another Pangestu-owned company, fell around 9%.

That weighed on the Indonesian benchmark (.JKSE) , opens new tab, which declined up to 2% during the session to mark its worst day since early August. It was last trading 1.4% down at a one-week low.

Barito Renewables has had an extremely volatile run since going public in October last year. In the nine months since its trading debut, the stock surged more than 1,100%, interrupted by two periods when it declined more than 50%.

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https://www.reuters.com/business/energy/indonesias-barito-renewables-tanks-ftse-russell-exclusion-2024-09-20/