Capital Market Reforms Judged to Strengthen Indonesia's Investment Competitiveness

Thu, 26 Feb 2026, 19:13 WIB | By | Source: INVESTOR.ID | Finance

Jakarta, investor.id – Indonesia’s capital market reforms are considered a strategic step in strengthening the foundation of the national investment climate. Although often regarded as a technical policy that only impacts market participants, the direction and quality of the reforms actually determine Indonesia’s competitiveness and credibility in the eyes of global investors.

One of the main focuses of the reform is increasing the proportion of shares in public circulation, or free float. Markets with low free float levels tend to have limited liquidity, high volatility that does not reflect fundamentals, and the risk of concentrated ownership.

Director of PT Kredit Rating Indonesia, Syaiful Adrian, said that the policy of increasing free float is an important structural step to improve market quality. Better liquidity, he said, will strengthen healthy price formation mechanisms while also increasing the confidence of long-term investors.

“Adequate free float will improve the price discovery mechanism, increase liquidity, and expand the investor base. In the long term, a more efficient market will be more attractive to pension funds, insurance companies, and global investment managers,” he said in a written statement on Thursday (February 26, 2026).

In addition, Syaiful added, transparency of the Ultimate Beneficial Owner (UBO) is also an important aspect in the reform agenda. Global investors today not only consider potential returns, but also non-financial risks such as governance, compliance, and corporate reputation.

“Complex or opaque ownership structures are often perceived as an additional source of risk,” he stressed.

Syaiful emphasized that clarity regarding the main controller of an entity will reduce the risk of information asymmetry and strengthen corporate governance. Transparency, he said, is an important foundation for building market trust.

Furthermore, he added, this reform is seen as part of an effort to build a deeper and more sustainable capital market.