IDX: POJK Demutualisation Concept Will Not Compromise Exchange Independence

Jakarta (ANTARA) - PT Bursa Efek Indonesia (IDX) has stated that the concept of exchange demutualisation within the draft Financial Services Authority (OJK) Regulation emphasises that the independence of the IDX in performing its functions and roles in the capital market must not be compromised.

“The main message of the OJK regulation is that this demutualisation, which may introduce new shareholders, must not threaten or disturb the independence of the exchange. Therefore, the OJK regulation strongly emphasises that the exchange must remain independent,” said IDX Development Director Iding Pardi in Jakarta on Friday.

According to him, the provisions in the OJK regulation will eventually govern several aspects to ensure the independence of the IDX is maintained following the demutualisation process, ranging from budget management and board of directors regulations to shareholding limits.

On the other hand, the IDX also responded to circulating information regarding the shareholding portion of Danantara following the demutualisation process. He emphasised that the size of such ownership has not yet been finalised as it is still awaiting approval from the OJK.

“So, the news circulating regarding specific percentages, or who the parties involved are, is still awaiting the OJK approval process; therefore, it is not yet firm, so we shall wait,” said Iding.

Iding added that within the drafted regulations, there is a provision regarding a maximum shareholding limit in the IDX of 5 per cent. Meanwhile, any ownership exceeding this limit requires approval from the OJK.

“The rule-making process includes provisions stating that the maximum ownership is 5 per cent, and anything above 5 per cent requires OJK approval,” he said.

Furthermore, regarding the Initial Public Offering (IPO) of the IDX, it was stated that such an event represents the ideal form of demutualisation.