Jakarta. The planned demutualization of the Indonesia Stock Exchange (IDX) represents the culmination of the country's capital market reforms, strengthening corporate governance, reducing conflicts of interest, and enhancing the exchange's global competitiveness, a senior Indonesian lawmaker said on Tuesday.

Mukhamad Misbakhun, chairman of the House of Representatives' Commission XI overseeing financial affairs and national development planning, described the reform as a major turning point in Indonesia's efforts to modernize its capital markets.

“This will be the pinnacle of our capital market reform,” Misbakhun said in a keynote address during the 25th anniversary celebration of Investor Daily at the Indonesia Stock Exchange in Jakarta.

Under the demutualization model, ownership of the exchange will be separated from its trading members, creating a governance structure that is more independent, transparent, and professionally managed.

Misbakhun noted that many of the world's leading exchanges, including the New York Stock Exchange, have already adopted similar ownership structures.

“Demutualization is expected to ensure that the exchange is managed by parties without direct ownership interests in the market's price formation,” he said, arguing that the reform would reduce potential conflicts of interest while strengthening public confidence in Indonesia's capital markets.

Strengthening Domestic Institutional Investors
Misbakhun said governance reforms should be accompanied by stronger domestic institutional investors to make Indonesia's capital market more resilient during periods of global financial volatility.

He pointed to major state-backed investment institutions -- including Danantara, BPJS Ketenagakerjaan, and the Hajj Financial Management Agency (BPKH) -- as potential stabilizing forces capable of cushioning the market against large foreign capital outflows.

“BPJS Ketenagakerjaan alone manages nearly Rp 1,000 trillion ($55.8 billion) in assets,” he said. “If foreign investors were to withdraw Rp 300 trillion, these institutions would still have sufficient capacity to help stabilize the market.”

Under the recently enacted Law No. 4 of 2026 on the Development and Strengthening of the Financial Sector, the Ministry of Finance, Bank Indonesia, and Indonesia's sovereign investment agency Danantara will be eligible to become shareholders in IDX during the initial phase of demutualization.

“We want to transform the Indonesia Stock Exchange into a world-class exchange,” Misbakhun said. “As a member of the G20, Indonesia deserves a stock exchange that meets global standards.”