Indonesia's Danantara prepares to acquire stake in Indonesia Stock Exchange

Indonesia's sovereign investment agency, Danantara, is actively preparing to acquire a significant stake in the Indonesia Stock Exchange (IDX), marking a key step in the market operator's ongoing demutualization process. Pandu Sjahrir, Chief Investment Officer at Danantara, confirmed the agency's preparations and ongoing coordination with regulatory bodies.

Sjahrir stated that Danantara is working closely with the Financial Services Authority (OJK) and the IDX Board of Directors to finalize the ownership transition. He indicated that the demutualization process is progressing and is expected to be completed within the next few months. The equity acquisition by Danantara will be executed through its subsidiary, PT Danantara Investment Management, following direct investment mandates from the agency's leadership.

The demutualization framework is a legal requirement under Indonesia's Law No. 4 of 2026 on the Development and Strengthening of the Financial Sector (P2SK Law). This legislation mandates the restructuring of the IDX from its current status as a member-owned mutual entity into a joint-stock company. Details regarding the precise size of Danantara's shareholding are still being finalized and will be announced later.

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Our demutualization process is still in progress, both with the OJK and the Exchange Board of Directors. God willing, it will be completed in the next few months.

Hasan Fawzi, Executive Head of Capital Market, Financial Derivatives, and Carbon Exchange Supervision at the OJK, elaborated on the share acquisition process. He explained that under the P2SK Law, state representatives, including Bank Indonesia, the Ministry of Finance, and Danantara, will be given priority in acquiring shares in the stock exchange. Following these state-backed entities, private arrangements among other key stakeholders will be made.

The OJK is currently drafting specific regulations for the demutualization process, with a target completion date in the second week of September 2026. This regulatory framework is crucial for establishing the legal foundation for the institutional overhaul of the IDX.

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Under the P2SK Law, state representatives through Bank Indonesia, the Finance Ministry, and Danantara will be the first parties given the opportunity to hold shares in the stock exchange.