Indonesian Stock Exchange Could Distribute Dividends Upon Completion of Demutualization

The Financial Services Authority (OJK) has indicated that the Indonesian Stock Exchange (BEI) will have the opportunity to distribute dividends to shareholders once the demutualization process is completed.

Hasan Fawzi, Acting Head of Capital Market Supervision, Derivatives Finance, and Carbon Exchange at OJK, stated that demutualization is being undertaken to modernise the institutional structure of the Indonesian Stock Exchange.

“There will be a change in the nature of the organisation from its original non-profit status, which was prohibited from distributing profits and dividends, so in the future this may be permitted,” Fawzi said when met at the Indonesian Parliament building in Jakarta on Wednesday, 11 March 2026.

Fawzi noted that BEI could further develop its products and services with the requirement to generate profits. He also stated that demutualization aims to strengthen governance and the future development of the exchange.

Demutualization is also expected to drive product and service development at the stock exchange. The exchange is being asked to be more proactive in attracting large investors, no longer merely reactive but actively reaching out to and inviting investors.

“Subsequently, of course, there will be broader opportunities, greater adaptability to collaborate in business with other leading exchanges worldwide, regionally and globally,” he said.

Demutualization of the Indonesian Stock Exchange (BEI) is mandated under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector (UU P2SK), which requires a change in structure from a mutual organisation (owned by exchange members) to a limited liability company (public). Currently, the government is drafting the Government Regulation (RPP) on Demutualization, which will serve as the primary legal basis, with completion targeted for the first half of 2026.