OJK Issues New Rules for IDX Shareholders
The Financial Services Authority (OJK) prohibits a majority shareholder, or ownership exceeding 50 percent, in the Indonesia Stock Exchange (IDX).
On September 17, 2016, the Financial Services Authority (OJK) released regulations, known as POJK Number 13 of 2016, concerning the demutualization of the Indonesia Stock Exchange (IDX). The new rules took effect on the same day as their announcement. Hasan Fawzi, Executive Head of the Capital Market Supervisory, Financial Derivatives, and Carbon Market at OJK, emphasized the significance of demutualization as part of Indonesia's capital market integrity reform plan.
Demutualization, as described by Fawzi, allows for broad ownership by exchange members, strategic investors, and the public, promoting governance quality improvement, wider capital access, and accelerated development of the Stock Exchange. The regulations under POJK 13 of 2026 cover various aspects, including IDX shares, ownership and exchange membership separation, demutualization implementation, regulatory, supervisory, and business functions separation, dividend distribution, and IDX reports. Additionally, the rules incorporate provisions to ensure IDX's independence.
IDX shareholders are allowed to hold a maximum of five percent of the company's outstanding shares, with any interest above this percentage requiring OJK approval. This provision aims to prevent dominion, concentration of share ownership, and control by a single entity. Furthermore, any party is barred from holding IDX shares in the majority or more than 50 percent, either directly or indirectly through affiliated parties.
The selection of IDX Directors and Board of Commissioners is carried out in accordance with OJK's testing for capability and suitability.
Danantara, a state institution interested in holding stock in the exchange, had previously planned to acquire 69 shares, or 40.12 percent of the IDX after the rights issue. However, the identification of interested parties and the extent of their involvement remains unclear. Iding Pardi, IDX Director of Development, stated that the circulating percentages and involved parties are still awaiting OJK approval, leaving their confirmation uncertain.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
