Supporting Transparency, Capital Market Reforms Accelerated
Jakarta, CNBC Indonesia - The Financial Services Authority (OJK), together with the Indonesia Stock Exchange (BEI) and the Indonesian Central Securities Depository (KSEI), has completed four strategic steps to strengthen transparency as well as liquidity in the capital market. This initiative is part of eight action plans to accelerate reforms in the integrity of Indonesia’s capital market and efforts to enhance Indonesia’s competitiveness in the eyes of global investors and index providers such as MSCI.
The four agendas include the opening of share ownership data above 1% to the public, an increase in the minimum free float limit to 15% through adjustments to Exchange Regulation Number I-A and its Circular Letter. There is also the strengthening of investor data granularity by KSEI to 39 classifications, as well as the implementation of announcements for concentrated share ownership data or High Shareholding Concentration (HSC).
Through this policy, investors can now access more detailed information regarding share ownership structures, from shareholder identities, the amount of ownership, status as controllers or affiliates, to beneficial owners. Share ownership data above 1% is available on the BEI website on the announcements page with the keyword “Shareholders above 1%”.
Not only transparency, various efforts are being made to increase market liquidity, one of which is through raising the minimum free float limit to 15%. Acting President Director of BEI Jeffrey Hendrik emphasised that this policy also covers the redefinition of the free float concept, as well as the strengthening of share classifications, including in the IPO process.
“A transition period is set for Listed Companies to mitigate potential short-term pressures on share prices and market liquidity,” said Jeffrey in an official statement on Wednesday (6/5/2026).
He added that by maintaining the 5% ownership threshold in line with global standards, this policy is expected to increase liquidity while attracting more investors.
Market transparency is also expanded through the presentation of more granular share ownership data. Investor classifications, which previously consisted of only 9 classifications, have now become 39 classifications and types, providing a more detailed picture of investor composition.
This information can be accessed by the public through the announcements page on the BEI website with the keyword “Report on Listed Company Share Ownership Data Based on Investor Classifications”.
In addition, Indonesia’s capital market is adopting global best practices implemented by the Hong Kong Exchanges and Clearing (HKEX) through HSC announcements, which provide information on shares with ownership concentrated in a small number of parties. Information on shares indicated as having HSC is published on the BEI website on the announcements page with the keyword “High Concentrated Share Ownership”, so it can be accessed by investors and the public at large. This information is published openly to improve the quality of information as well as strengthen investor protection.
“Transparency of share ownership data above 1% and HSC disclosure will enhance the quality of market information while helping investors to understand the ownership structure of a listed company more comprehensively,” added Jeffrey.
Looking ahead, BEI reaffirms its commitment to continuing reforms with a focus on strengthening transparency, liquidity, and refining market structures.
“Through consistent reforms and open communication with all stakeholders, we are optimistic that Indonesia’s capital market will become increasingly attractive to both domestic and global investors,” said Jeffrey.
These enhancements are accompanied by improvements in governance capacity as well as intensive socialisation to market participants. Various socialisation efforts, both in-person and online, are conducted to open active dialogue spaces with domestic and global stakeholders.
BEI consistently opens open and constructive communication with all stakeholders. Communication channels have been provided to facilitate access to information and consultations for all market participants, which can be done by sending an email to [email protected].
Capital market observer Hans Kwee assesses that the acceleration of transparency reforms carried out by the authorities is a positive step in enhancing the integrity of Indonesia’s capital market. He also views this policy as relevant in responding to global investor expectations.
“This is very good for improving the integrity of our capital market. This step also meets MSCI’s demands and elevates the transparency class of Indonesia’s capital market,” he said.
Furthermore, Hans emphasised the importance of regulator communication with global index providers in maintaining investor confidence. He added that the opening of share ownership data and the strengthening of investor data make the market more transparent, while increasing the minimum free float to 15% will impact liquidity.
“The increase in free float will add share supply to the market, thus potentially increasing liquidity,” he stressed.