Lombok. Indonesia and India are the only two countries that publicly disclose the identities of shareholders holding more than 1% of listed companies, Indonesia Stock Exchange (IDX) President Director Jeffrey Hendrik said Saturday, highlighting efforts to strengthen transparency and investor confidence in the Indonesian capital market.

Speaking at a seminar in Mandalika, Lombok, Jeffrey said the disclosure requirement was part of broader reforms aimed at improving the quality of information available to investors.

"We have made public the names of shareholders holding more than 1%. Only Indonesia and India do this worldwide," Jeffrey said.

He said the IDX was also working to disclose relationships among shareholders, allowing investors to determine whether individuals or entities holding shares in the same company are affiliated.

The additional information is intended to provide greater clarity about ownership structures, particularly where multiple shareholders may have connections that are not immediately apparent from their names.

Jeffrey said the exchange was improving its ownership disclosures in stages.

Initially, the IDX published shareholder names. It subsequently expanded the information to include investor classifications and plans to add details indicating whether shareholders are affiliated with one another.

"Going forward, we will also indicate whether these shareholders are affiliated or unaffiliated to improve the quality of transparency," he said.

More Detailed Ownership Data
As part of the reforms, the IDX has expanded its investor classification system from nine categories to 39, providing a more detailed breakdown of share ownership.

The exchange has also begun identifying stocks with high shareholding concentration, giving investors additional information to consider when assessing listed companies.

Concentrated ownership can be relevant to investors because a relatively small number of shareholders may control a substantial proportion of a company's shares, potentially affecting the amount of stock available for public trading.

Jeffrey said the measures were designed to strengthen the quality of market disclosures and reinforce confidence among domestic and international investors.

Add as a preferred source on Google +