OJK to Limit Ownership as Indonesia Stock Exchange Prepares for\nDemutualization<\/p>\n
Jakarta. The Financial Services Authority (OJK) aims to complete\nimplementing regulations for the demutualization of the Indonesia Stock\nExchange (IDX) within three months, introducing ownership limits to\nprevent any single shareholder from dominating the country\u2019s bourse.<\/p>\n
The initiative follows the enactment of a revised financial sector\nlaw that authorizes OJK to oversee the transformation of IDX from a\nmember-owned exchange into a shareholder-owned company.<\/p>\n
Demutualization has become a common model among major global\nexchanges, enabling them to strengthen corporate governance, attract\nstrategic investors, expand internationally, and invest more\naggressively in technology while maintaining their regulatory\nresponsibilities.<\/p>\n
\u201cWe are currently drafting the implementing regulations, including\nprovisions on who may become shareholders after demutualization,\u201d OJK\nCapital Market Supervisory Chief Hasan Fawzi said on Tuesday during the\n25th anniversary celebration of Investor Daily at the Indonesia Stock\nExchange in Jakarta.<\/p>\n
\u201cWe are also studying ownership caps. The principle is that no\nshareholder should be allowed to control the exchange because it\noperates critical market infrastructure and must serve the interests of\nall market participants,\u201d he said.<\/p>\n
Under the current mutual ownership model, IDX is owned exclusively by\nits exchange members. Demutualization will allow qualified external\ninvestors to acquire shares, aligning Indonesia\u2019s exchange structure\nwith that of many major stock exchanges around the world.<\/p>\n
Hasan stressed that despite the ownership change, IDX will continue\nto serve as a Self-Regulatory Organization (SRO) responsible for\nmaintaining fair and orderly capital markets.<\/p>\n
\u201cThe exchange is not merely a commercial entity. Its independence as\na Self-Regulatory Organization remains our top priority,\u201d he said.<\/p>\n
The new framework will also allow IDX to expand its commercial\nactivities through strategic partnerships with regional and global\nexchanges while modernizing its products and services.<\/p>\n
\u201cWe want to create room for the exchange to modernize, including\nthrough strategic cooperation with regional and international exchanges\nwhere appropriate,\u201d Hasan said.<\/p>\n
Following demutualization, IDX will be permitted to generate profits\nand distribute dividends to shareholders.<\/p>\n
\u201cThe exchange will be able to earn profits and pay dividends, but\nsafeguarding its independence as an SRO will remain paramount,\u201d Hasan\nsaid.<\/p>\n
The reform follows the passage of Law No.\u00a04 of 2026 on the\nDevelopment and Strengthening of the Financial Sector, enacted on June\n17. The legislation gives OJK direct authority to formulate the\nregulations needed to implement IDX\u2019s demutualization.<\/p>\n
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