IDX Demutualisation: Danantara, Bank Indonesia Could Become Stock Exchange Shareholders
The government has officially opened the path for a major transformation in Indonesia’s capital market through the ratification of Law No. 4/2026 concerning Amendments to Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (P2SK). One of the key points in the regulation is the strengthening of the capital market through a demutualisation scheme for the Indonesia Stock Exchange (IDX), which allows the exchange to operate as a profit-oriented company with a broader ownership structure.
Through the amendment of Article 8 paragraph 1, the regulation explains that a Stock Exchange is a limited liability company established by a number of business entities in the form of limited liability companies that are not affiliated with one another. In more detail, the ‘number of business entities’ refers to the minimum number of business entities required so that transaction activities on the Stock Exchange can be carried out in an atmosphere of healthy competition. The founders of the Stock Exchange must also not be affiliated with each other and must be open as widely as possible to business entities that meet the requirements to avoid collusion and market control by a certain group of companies.
Furthermore, in Article 8 paragraph 3, it is affirmed that shareholders of the Stock Exchange consist of individuals and/or Indonesian legal entities, both Stock Exchange Members and non-Stock Exchange Members. This provision marks a fundamental change from a membership-based (mutual) exchange model towards a demutualised model that has been adopted earlier by many global exchanges.
In the explanation of the law, it is stated that the change is intended so that the Stock Exchange can move more quickly to keep up with the increasingly dynamic development of global financial markets. ‘This provision reflects the nature of the Stock Exchange which is not based on membership (mutual), but is demutual and profit-oriented,’ the regulation stated. This is intended so that the Stock Exchange can move quickly in line with rapid globalisation. With a profit-oriented nature, the Stock Exchange can attract the interest of large investors who have a significant role in advancing the Exchange. With its demutual nature, the Stock Exchange is allowed to become a publicly listed company. Thus, the Stock Exchange is managed professionally, with governance referring to the principles of accountability, transparency, effectiveness, efficiency, and fairness.
Additionally, this new structure opens opportunities for the Stock Exchange to attract strategic investors with financial and technological capacity to accelerate the modernisation of Indonesia’s capital market infrastructure.
Another significant change is the creation of Article 8B, which specifically regulates the parties that can become shareholders of the Stock Exchange. In this new provision, the government provides room for the Ministry of Finance, Bank Indonesia (BI), and the Daya Anagata Nusantara Investment Management Agency (Danantara) to own shares in the Stock Exchange. ‘The Ministry of Finance, Bank Indonesia, and the Daya Anagata Nusantara Investment Management Agency may become shareholders of the Stock Exchange,’ reads Article 8B paragraph (1). However, share ownership by these state institutions must still maintain the independence of the Stock Exchange as an organiser of securities trading.
Previously, IDX President Director Jeffrey Hendrik explained that of all the major exchanges in the world, the IDX is one of the exchanges that has not yet undergone demutualisation. Currently, Jeffrey said, the IDX is among the world’s top 20 exchanges in terms of transactions. ‘With demutualisation, we believe the exchange will be more modern, more agile, and certainly more professional,’ Jeffrey stated in Jakarta. He further said that demutualisation will open opportunities for all parties, not just the exchange itself, but also shareholders. With demutualisation, the Exchange’s goal in the next 4-5 years is to be in the top 10 global exchanges. Through the demutualisation process, Jeffrey believes the IDX will become more modern, more agile, and more professional going forward.