OJK to Limit Government Ownership in Stock Exchange

TEMPO.CO, Jakarta - The Financial Services Authority (OJK) is drafting derivative regulations on the demutualization of the Indonesia Stock Exchange (IDX), with plans to issue them by the second week of September 2026. Hasan Fawzi, OJK's Chief Executive of Capital Markets, Financial Derivatives, and Carbon Exchange Supervision, said the rules will ensure equity stakes held by the Ministry of Finance, Bank Indonesia, and Danantara do not undermine the exchange's independence.

The recent revision of the Financial Sector Development and Strengthening Law (UU P2SK) permits the Ministry of Finance, Danantara, and the central bank to acquire shares in PT IDX following its demutualization. Hasan emphasized that, under the revised law's mandate, the participation of these state entities must never jeopardize the exchange's neutrality.

"We will underscore this in the draft Financial Services Authority regulation," Hasan wrote in a statement following OJK's Monthly Board of Commissioners Meeting released on Wednesday, July 29, 2026.

He noted that the strengthened policy will lay out specific rules governing key operational mechanisms. These encompass decision-making, rule-making processes, and organizational frameworks, all of which will require prior OJK approval before taking effect.

Hasan explained that the OJK, as the capital market authority, is still crafting the secondary regulations under Law No. 4 of 2026. The regulator is engaging various key stakeholders, including the Indonesia Stock Exchange, the Association of Indonesian Securities Companies (APEI), and other industry players. This collaborative approach aims to yield comprehensive, workable rules that preserve the independence of both the OJK as supervisor and the IDX as the demutualizing entity.

Joint studies involving the government and the House of Representatives (DPR) are also underway to expedite the regulatory process. "With the support of the government and relevant stakeholders, we are targeting the issuance of the OJK Regulations on Stock Exchange Demutualization in the second week of September 2026," he said.

Law No. 4 of 2026, which revises the P2SK Law, introduces a new article governing the demutualization of the stock exchange. Under this mandate, the IDX will transition from a member-owned, self-regulatory organization into a limited liability company (PT).

Article 8, Paragraph 1 of the omnibus law highlights this shift, stating, "The Stock Exchange is a limited liability company established by multiple unaffiliated limited liability business entities."

The amendment also includes a clause opening equity ownership to state institutions, with Article 8B, Paragraph 1 of Law No. 4 of 2026 stipulating, "The Ministry of Finance, Bank Indonesia, and the Daya Anagata Nusantara Investment Management Agency (Danantara) may hold shares in the Stock Exchange."

In addition, the new framework specifies that exchange shareholders may comprise Indonesian individuals or legal entities, regardless of whether they are exchange members. A separate article explicitly reinforces that equity participation by the Ministry of Finance, Bank Indonesia, and Danantara must be executed without compromising the stock exchange's independence.

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