Jakarta. Danantara said Thursday that it would play by the rules set by the financial watchdog OJK as the fund explores plans to buy a stake at the Indonesia Stock Exchange (IDX).

Indonesia is in the midst of opening up its bourse to public ownership, a move better known as demutualization. The OJK has rolled out a regulation, requiring its green light for any IDX purchase of more than a 5% stake. Indonesia is still ironing out the details, but Danantara’s top brass have repeatedly floated IDX ownership plans.

“Danantara will take a look at the possibility. But even if the stake purchase does happen, we will certainly follow OJK’s rules on the 5% ownership,” Danantara chief operating officer Dony Oskaria told the recent Investor Daily Summit in Jakarta.

He went on to say that Danantara is still deliberating on the decision.

“A [demutualized exchange model] is part of Indonesia’s commitment to boost its transparency.”

IDX is pursuing demutualization following index providers’ scrutiny, which had caused stocks to tumble. Other reforms include a minimum free float hike from 7.5 to 15%, on top of publication of information on shareholders owning over 1% of listed companies.

In its recently published regulation, OJK has capped the IDX ownership at 5%. But anyone who exceeds the limit must gain the watchdog’s approval as long as it brings “added value” to the bourse, such as strong capital and technological capabilities. 

State news agency Antara, quoting OJK’s chief capital market supervisor Hasan Fawzi, recently wrote that IDX was still working on the changes to existing rules amid Danantara’s interest. The speed of the demutualization completion also hinges on the exchange’s readiness.

Danantara boss Rosan Roeslani had signaled that the fund’s stake would be within the 5% to 10% range.

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