OJK Unveils Comprehensive Reforms! Four New Strategies Set to Transform Indonesia's Capital Market Landscape
The Financial Services Authority (OJK) has announced that four major initiatives to address feedback and requests from global index providers and investors have been fully completed. These initiatives encompass strengthening share ownership transparency, managing risks from concentrated ownership, improving investor data quality, and reinforcing policies to increase free float levels.
“We are implementing these four focus initiatives as a unified policy. Praise be to God, we can report that as of last March, in line with our set targets, all these initiatives have been completed and finalised,” stated Hasan Fawzi, Executive Head of OJK’s Capital Market, Derivatives Finance, and Carbon Exchange Supervision, during a Press Conference and Socialisation of Indonesia’s Capital Market Transparency Reform Achievements at the Indonesia Stock Exchange building in Jakarta on Thursday (2/4).
Firstly, he continued, share ownership transparency is now available even for 1% holdings across all companies listed on the Indonesia Stock Exchange.
“We have even implemented this since the February 2026 data cut-off, which was carried out at the beginning of March 2026. Of course, in line with our commitment, we will revise and release it monthly with the end-of-month data cut-off. For March, it was also issued yesterday on the 1st,” explained Hasan.
Secondly, the enhancement of investor data quality was published on 1 April. This was achieved through greater granularity and detail in investor type data presented by the Indonesian Central Securities Depository (KSEI).
“Of course, with full support from all stakeholders contributing to filling in the granular data or more detailed information on investor types,” said Hasan.
Thirdly, the strengthening of free float policies has been completed and enacted through amendments to Rule 1A on listing by the Indonesia Stock Exchange.
“This involved meaningful public participation from the community and especially key stakeholders, issuers, and buy-side players. It also underwent review and refinement through intensive discussions between OJK teams and the Indonesia Stock Exchange teams,” he elaborated.
Fourthly, the mechanism for high shareholding concentration is starting to be publicly disclosed today (2/4).
“This will serve as important additional information that could be used as an early warning for investors in making decisions. It’s not due to any specific violation but will openly provide information on stocks confirmed to have high concentration or limited ownership by just a few parties,” said Hasan.
With the completion of these four initial initiatives, he added, the reforms launched since early February will continue to be ensured as concrete, measurable, and aligned with regional and global best practices.
“In fact, if observed in several aspects, it even positions the Indonesia Stock Exchange competitively compared to the transparency and information openness of other exchanges,” stated Hasan.
On the same occasion, Jeffrey Hendrik, Acting Director of the Indonesia Stock Exchange (BEI), noted that the four proposals submitted to MSCI and FTSE have been finalised.
The first is the disclosure of shareholders holding more than 1%, which was done on 3 March using end-of-February data, and the end-of-March period has also been completed. “From our monitoring, the market response to this initiative has been positive,” said Jeffrey.
The second is increasing the minimum free float requirement from the previous 7.5% to 15%. The third is enhancing data granularity by refining investor classifications at KSEI from 9 categories to 39 investor subtypes.
The fourth is strengthening share ownership data by implementing high shareholder concentration mechanisms. As part of accelerating the implementation of several initiatives, particularly related to reforms in the integrity of Indonesia’s capital market, the Indonesia Stock Exchange has adjusted Rule 1A on the listing of shares and equity securities other than shares issued by listed companies.
This regulation took effect on 31 March. The adjustments support strengthening liquidity aspects and good corporate governance in Indonesia’s capital market.
He mentioned that increasing the free float requirement is part of joint efforts to align with global best practices. This policy is expected to enhance liquidity and investment attractiveness in the domestic market for both domestic investors, particularly institutional ones, and global investors.
In general, Jeffrey said, the adjustments to Rule 1A, effective 31 March, cover several aspects. First is raising the minimum free float requirement to 15% for all listed companies.
Second is adjusting IPO free float requirements with tiering based on market capitalisation, increased to a minimum of 15%, 20%, and 25% for new IPOs, and this applies immediately.
Third is strengthening the definition and criteria for free float itself. Fourth is adding obligations for competency certification for those preparing financial reports in listed companies. Fifth is enhancing the capacity of directors, boards of commissioners, and audit committees through ongoing education.
“These policies not only focus on liquidity aspects but also aim to strengthen corporate governance and the quality of transparency for listed companies on the Indonesia Stock Exchange.”