Optimistic About Capital Market Growth, Analyst Welcomes OJK's Steps Positively
Jakarta, CNBC Indonesia - Capital market practitioner Hans Kwee assesses that the agenda to strengthen transparency in Indonesia’s capital market being undertaken by the Financial Services Authority (OJK) is highly appropriate. He even welcomes the step of submitting proposals to Global Index Providers, including MSCI, undertaken by OJK together with the Indonesia Stock Exchange (BEI) and the Indonesian Central Securities Depository (KSEI).
One of them relates to the provision of data on share ownership of public companies above 1% to the public and free float shares.
“This High Shareholding Concentration (HSC) is what MSCI requests, thus helping them in deciding which shares enter the MSCI index. In addition, the grouping of the 39th investor will help the more detailed analysis process and assist MSCI as well as local and foreign investors in conducting analysis,” Hans explained to CNBC Indonesia on Thursday (2/4/2026).
Specifically for free float, according to him, it can be the beginning of an increase in Indonesia’s weighting in global indices both in MSCI and FTSE. Hans predicts that the impact of this reform will be felt at least in May, when MSCI and FTSE receive Indonesia’s proposal.
“Currently, the capital market is influenced by the US-Israel and Iran conflict, so the impact is not yet visible. In May, when MSCI and FTSE receive our proposal and the potential is very large, we will not drop to FM. The market will respond positively. After this reform, the opportunity for Indonesia’s weighting to rise in MSCI and FTSE is very large,” Hans emphasised.
It is known that OJK, BEI, and KSEI have just conducted a Socialisation of the Achievements of Indonesia’s Capital Market Transparency Reform.
The Executive Head of Capital Market, Derivative Finance, and Carbon Exchange Supervision of OJK, Hasan Fawzi, mentioned that the four agendas in question are part of the 8 Action Plans for Accelerating the Integrity Reform of Indonesia’s Capital Market, which has been launched by OJK together with Self-Regulatory Organisations (SRO) on 1 February 2026.
The four agendas include:
Provision of data on share ownership of Listed Companies above 1 percent to the public;
Implementation of High Shareholding Concentration (HSC) announcements;
Strengthening the granularity of investor classification in KSEI share ownership data, becoming a total of 39 classifications and investor types; and
Increase in the minimum free float limit to 15 percent through adjustments to BEI Regulation Number I-A.
In addition, there is strengthening of transparency in the form of regulations regarding the availability of data on Beneficial Owners from shareholders of Listed Companies with ownership of 10 percent or more.
“Thus, the four proposals submitted by the Indonesian side to Global Index Providers have been completed and fulfilled according to the planned targets. Next, we will continue constructive communication and engagement with Global Index Providers, as well as gather feedback from investors,” Hasan explained.
Furthermore, Hasan stated that the policies taken by OJK together with SRO in completing the four proposals are in line with standards/practices in various global jurisdictions. In fact, in some aspects, Indonesia is in a superior position in terms of transparency and granularity of information, including the availability of share ownership data above 1 percent.
The completion of these four transparency strengthening proposals is expected to encourage healthier liquidity and improve the quality of price discovery in the domestic stock market. This is ultimately expected to help maintain investor confidence and boost the credibility and attractiveness of Indonesia’s capital market at the global level.
Implementation of the Four Transparency Reform Proposals for Indonesia’s Capital Market
As part of accelerating the integrity reform of Indonesia’s capital market, BEI has made adjustments to Exchange Regulation Number I-A which covers strengthening free float policies and corporate governance, which has been effectively implemented on 31 March 2026. These changes include, among others, adjustments to the definition of free float shares, an increase in the minimum free float limit to 15 percent, and more comprehensive regulations related to the classification and provisions of free float shares, especially in the IPO process.
On the same occasion, Acting President Director of BEI Jeffrey Hendrik emphasised that the increase in free float provisions is also part of efforts to align with best practices of various other international exchanges.
“While still maintaining the ownership threshold of 5 percent in line with global standards, this policy is expected to increase liquidity and investment attractiveness in Indonesia’s capital market, both for domestic and global investors,” Jeffrey said.
BEI also encourages strengthening governance aspects through increased financial reporting obligations and development of the capacity of Directors, Commissioners, and Audit Committees. In line with the implementation of these policies, BEI has prepared stages of socialisation and assistance to all stakeholders since the enactment of the changes to Exchange Regulation Number I-A. These efforts are carried out through various activities such as roadshows, public exposes, capacity building, as well as the provision of hot desks and ongoing assistance to support the readiness of Listed Companies in meeting free float provisions and sustainably improving the quality of Indonesia’s capital market.
The implementation of the increase in free float provisions is contained in Exchange Regulation Number I-A on the Listing of Shares and Equity Securities Other than Shares Issued by Listed Companies, which was issued on 31 March 2026. For the smooth implementation, a transition period is also enforced for Listed Companies to meet the free float provisions.
In addition, BEI also issued an amendment to the Director’s Decree regarding the Monthly Report Provisions on Share Ownership Registration Activities (SK LBRE) on 1 April 2026. This change strengthens the obligations