Misbakhun: Indonesia Stock Exchange Demutualisation Can Proceed Via Private Placement

Jakarta – The demutualisation of the Indonesia Stock Exchange (IDX) can be implemented through private placement mechanisms, with implementation targeted for the second quarter of 2026. Mukhamad Misbakhun, Chairman of Commission XI of the House of Representatives, stated that this step is part of an accelerated restructuring process in the domestic stock market. He emphasised that several reform agenda items, including the regulation of floating shares, ultimate beneficial ownership (UBO), and demutualisation, will be pursued in parallel.

Regarding the timeline, Misbakhun stated that implementation in the second quarter of 2026 remains the target. He also indicated the possibility of private placement as an alternative mechanism alongside Initial Public Offering (IPO).

“There will definitely be various mechanisms. Private placement makes sense because existing shareholders must divest. Of course, private placement,” Misbakhun stated during the CNBC Market Outlook 2026 event at the Indonesia Stock Exchange building in Jakarta on Tuesday, 3 March 2026.

Regarding the possibility of establishing a new holding company, Misbakhun added that this proposal has not yet been formalised. The current focus is on ensuring that the exchange is owned by credible shareholders with strong capital structures.

“As for establishing a new holding company and so forth, we haven’t yet formulated what that would look like. Because with demutualisation, we want the exchange to be owned by credible shareholders with strong capital structures,” he explained.

Demutualisation of the IDX constitutes a transformation or restructuring of the institution from one owned by members or securities firms to a limited liability company that can subsequently be publicly owned. The objectives of this demutualisation are to strengthen governance, increase professional management, reduce conflicts of interest, and enhance the global competitiveness of Indonesia’s capital market. The legal form of the IDX demutualisation will be implemented through government regulation.