OJK to Limit Indonesia Stock Exchange Ownership to Maximum 5 Per Cent Post-Demutualisation

Jakarta (ANTARA) - The Financial Services Authority (OJK) will limit share ownership of the Indonesia Stock Exchange (IDX) to a maximum of 5 per cent following its demutualisation.

This regulation will come into effect once the OJK Regulation (POJK) regarding the demutualisation of the IDX is officially issued.

“In the current concept of the POJK, we are stipulating a 5 per cent provision. This applies to everyone. Therefore, any party becoming a shareholder of the Exchange is permitted provided their ownership portion, relative to the total shares issued by the exchange, does not exceed a maximum of 5 per cent,” said Hasan Fawzi, OJK Executive Head of Capital Market, Derivatives, and Carbon Exchange Supervision, in Jakarta on Thursday.

However, Hasan noted that it remains possible for certain parties meeting the criteria for strategic shareholders to hold shares in the IDX exceeding the 5 per cent limit.

Currently, parties potentially falling into this category include Danantara Indonesia, Bank Indonesia (BI), and the Ministry of Finance. Nevertheless, any ownership exceeding the 5 per cent threshold must undergo a research and approval procedure in accordance with the provisions in the POJK.

“But once again, there will be criteria that certain parties may meet, particularly those serving as strategic shareholders, including the three aforementioned parties (Danantara, Bank Indonesia, and the Ministry of Finance). If those criteria are met and the process of research and approval under the POJK allows for it, it remains possible for certain parties to hold a share portion in the Stock Exchange that exceeds the 5 per cent limit,” he explained.

The POJK regulating the demutualisation of the exchange has entered the finalisation stage. The OJK aims to complete the regulation by September 2026.

“We hope to finalise it soon this month, in Q3, by this September. We have previously conducted initial discussions for harmonisation with the Ministry of Law, as the internal process is already final,” said Hasan.

Once the demutualisation POJK takes effect, the IDX will need to undertake several adjustments, both in terms of its articles of association and exchange regulations affected by the changes in institutional structure and ownership.

“The Indonesia Stock Exchange (IDX) must follow up by making the necessary adjustments, including aspects of changes to the articles of association. This is because the institutional structure, ownership, and organisational nature have changed,” he added.