OJK Prepares Rules for BEI Share Ownership Limits Post-Demutualization

Indonesia's Financial Services Authority (OJK) is preparing new regulations to cap maximum share ownership in the Indonesia Stock Exchange (BEI) following its demutualization. The move aims to structure ownership and ensure the exchange's strategic development.

While a general limit on share ownership will be established, the OJK acknowledges that exceptions can be made. Parties seeking to exceed the standard limit may be granted approval if they are assessed as strategic partners crucial for the industry's and the exchange's growth. This exception process will require thorough evaluation and explicit consent from the OJK.

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If it meets the criteria as a party that we view as a strategic partner for the development of the industry and the Stock Exchange, then excess ownership by that party can only be possible through a process of assessment and approval at OJK.

These forthcoming rules are intended to govern ownership for various entities, including state representatives such as the Ministry of Finance and Bank Indonesia, as well as any other interested parties. The OJK is currently studying international practices to determine appropriate ownership thresholds. While specific figures are not yet defined, the authority is considering a general maximum limit that would not require OJK approval for a single party.

Hasan Fawzi, Head of Capital Market, Derivative Financial, and Carbon Exchange Supervision at OJK, stated that the specific number of shares any party can hold is still under consideration. The focus is on establishing a framework that balances strategic investment with broader market access and control.

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There are certainly no specific indications regarding the number of shares owned by all parties, including the three institutions mentioned specifically in the Law. We are just thinking about a concept that generally there will be a maximum ownership limit allowed without OJK approval by a certain party.