Indonesia advances financial sector reforms and regulatory updates

Indonesia is advancing several regulatory and structural reforms within its financial sector. The Financial Transaction Reports and Analysis Center (PPATK) and PT Kustodian Sentral Efek Indonesia (KSEI) have signed a Memorandum of Understanding to strengthen capital market integrity, enhance coordination, and combat money laundering and terrorism financing.

Simultaneously, the Financial Services Authority (OJK) is finalizing key regulations. The draft regulation for the demutualization of the Indonesia Stock Exchange (BEI) is currently undergoing harmonization at the Ministry of Law, with a target issuance in September 2026. Additionally, the New Risk-Based Capital (New RBC) framework for insurance and reinsurance companies is also in the harmonization stage to ensure adequate capital adequacy and industry stability.

In market operations, the Indonesia Stock Exchange has suspended trading for PT Jhonlin Agro Raya Tbk. (JARR) to allow for a cooling-down period following significant price increases. The exchange also suspended PT LCK Global Kedaton Tbk. (LCKM) due to uncertainties regarding the company's business continuity.