Indonesia Stock Exchange implements reforms and ownership limit reviews

The Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK) are implementing several capital market reforms. OJK is currently reviewing a concept to limit maximum share ownership in the IDX following demutualization. While limits are being considered, OJK Executive Head Hasan Fawzi noted that strategic partners may be granted exceptions through an assessment and approval process. This regulation would apply to entities such as the Ministry of Finance, Bank Indonesia, and Danantara Indonesia.

Simultaneously, the IDX and OJK have communicated these reform measures to global index providers, including MSCI and FTSE, to bolster investor confidence. Investors are closely monitoring the upcoming MSCI Index Review scheduled for August 12-13, 2026, which will determine stock additions and deletions. IDX President Director Jeffrey Hendrik emphasized that while the exchange has presented its reform actions, the final decision rests with the global index providers.

In recent trading sessions, the Jakarta Composite Index (IHSG) has experienced significant volatility. After a period of decline, the index showed signs of recovery in mid-August, though market participants remain cautious due to global economic trends and the strength of the Rupiah.