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🇮🇩 Indonesia /Economy & Trade

Indonesia revises law, allowing state bodies to become shareholders in stock exchange

From Republika · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Official statement Approved/passed
  • Indonesia's Financial Services Authority (OJK) is revising the Financial Sector Development and Strengthening Law (UU P2SK) to allow state institutions to become shareholders in the Indonesia Stock Exchange (BEI).
  • The Ministry of Finance, Bank Indonesia, and the Investment Management Institution Danantara are specifically mentioned as potential shareholders.
  • The revision aims to strengthen the legal framework for the stock exchange's ownership structure while maintaining its independence.

Indonesia is set to potentially allow state institutions to become shareholders in the Indonesia Stock Exchange (BEI) following amendments to the Financial Sector Development and Strengthening Law (UU P2SK). The revised law, which was passed on June 4, 2026, opens the door for entities like the Ministry of Finance, Bank Indonesia, and the Investment Management Institution Danantara to hold shares in the BEI.

The Ministry of Finance, Bank Indonesia, and the Investment Management Institution Daya Anagata Nusantara can become shareholders of the Stock Exchange.

Quoting the provision in Article 8B (1) of the revised UU P2SK.

This provision is detailed in Article 8B, Paragraph (1) of the UU P2SK. However, the law emphasizes that any shareholding by these state bodies must not compromise the independence of the BEI as the operator of the capital market. Article 8B, Paragraph (2) explicitly states that the independence of the stock exchange must be maintained.

The BEI will continue to operate as a limited liability company established by non-affiliated Indonesian legal entities. Its shareholders can include individuals and Indonesian legal entities, whether they are members of the exchange or not. The management of the BEI will adhere to good corporate governance principles, including accountability, transparency, effectiveness, efficiency, and fairness.

Shareholding by the parties referred to in paragraph (1) while maintaining the independence of the Stock Exchange.

Quoting the stipulation in Article 8B (2) of the revised UU P2SK regarding independence.

Further regulations concerning the composition of shareholders will be determined by the Financial Services Authority (OJK). Previously, the OJK had indicated that strengthening the legal basis for the stock exchange's ownership structure, including the option of demutualization, was a key topic during the UU P2SK revision process. OJK's Chief Executive Supervisor for Capital Markets, Hasan Fawzi, confirmed that discussions on this matter took place during hearings with the House of Representatives (DPR).

Our parliament seems to be strengthening the legal basis for the implementation of, among other things, the demutualization of the Stock Exchange.

— Hasan FawziOJK's Chief Executive Supervisor for Capital Markets, explaining the discussions during parliamentary hearings.
DistantNews Editorial

Originally published by Republika in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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