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🇮🇩 Indonesia /Economy & Trade

OJK to Tighten Rules on Government Shareholding in Indonesia Stock Exchange

From Tempo · () Indonesian

Translated from Indonesian, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • Indonesia's Financial Services Authority (OJK) is finalizing rules for the demutualization of the Indonesia Stock Exchange (IDX), expected in September 2026.
  • New regulations will clarify government ownership stakes, ensuring the IDX's independence is maintained.
  • The IDX will transition from a non-profit, member-based organization to a limited liability company.

Indonesia's Financial Services Authority (OJK) is on the verge of issuing new regulations to govern the demutualization of the Indonesia Stock Exchange (IDX). These rules, targeted for release in the second week of September 2026, aim to clarify the ownership structure and ensure the stock exchange's operational independence.

We will clarify this in the Draft Regulation of the Financial Services Authority.

— Hasan FawziHasan Fawzi, OJK Chief Executive Supervisor, explaining the OJK's approach to regulating government ownership in the demutualized IDX.

The recent revision of the Financial Sector Development and Strengthening Law (UU P2SK) permits the Ministry of Finance, Bank Indonesia, and the investment management company Danantara to become shareholders of PT IDX post-demutualization. OJK Chief Executive Supervisor for Capital Markets, Derivatives, and Carbon Exchange, Hasan Fawzi, stated that these entities' participation must not compromise the IDX's neutrality. "We will clarify this in the Draft Regulation of the Financial Services Authority," Hasan said in a written response.

Fawzi elaborated that the specific policies will detail mechanisms for decision-making, rule issuance, and the framework requiring OJK approval before implementation. The OJK is actively collaborating with stakeholders, including the IDX and the Association of Securities Companies of Indonesia, to ensure the regulations are comprehensive and practical. The government and the House of Representatives are also involved to expedite the process.

The Stock Exchange is a limited liability company established by a number of limited liability business entities that are not affiliated with each other.

— Law Number 4 of 2026The legal definition of the Indonesia Stock Exchange following its demutualization, as stated in the revised law.

The demutualization, as outlined in Law Number 4 of 2026, signifies a shift for the IDX from a Self-Regulatory Organization (SRO) to a limited liability company (PT). This transformation is detailed in Article 8 of the omnibus law, which states, "The Stock Exchange is a limited liability company established by a number of limited liability business entities that are not affiliated with each other." The new legal framework also permits individuals or Indonesian legal entities, whether IDX members or not, to hold shares in the exchange, while ensuring the independence of the IDX and the OJK as the capital market regulator.

Ministry of Finance, Bank Indonesia, and Badan Pengelola Investasi Daya Anagata Nusantara (Danantara) may become shareholders of the Stock Exchange.

— Law Number 4 of 2026The provision in the revised law allowing specific government-affiliated entities to hold shares in the IDX.
DistantNews Editorial

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

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