Jakarta. Indonesia’s efforts to improve stock-market transparency face a critical test as global investors question whether regulatory reforms have translated into meaningful improvements in market governance and integrity.

“The announcement of policies and regulatory changes alone is not enough to maintain market confidence,” Nafan Aji Gusta, senior market analyst at Mirae Asset Sekuritas, told the Jakarta Globe. “Global investors need evidence that ownership structures are becoming more transparent, free float genuinely reflects shares available for trading, and market manipulation is consistently addressed when proven.”

In a Friday review, Kiwoom Sekuritas Indonesia said market participants continued to question the consistency of Indonesia’s reform progress, citing opaque ownership structures and suspected coordinated trading. According to Kiwoom’s summary of MSCI’s assessment, investors also questioned the lack of meaningful evidence of law enforcement against suspected coordinated trading.

One priority is transparency over ultimate beneficial ownership, which helps identify the parties ultimately controlling shareholdings. Regulators also need to improve free-float disclosures and strengthen oversight of concentrated ownership and suspicious transactions.

These measures are particularly important because reported market capitalization does not necessarily reflect how much stock is genuinely available to investors. Indonesia’s plan to raise the minimum free-float requirement to 15% is intended to improve market investability, but Nafan said announced reforms had yet to demonstrate consistent and significant improvements across the market.

Responsibility rests with the Indonesia Stock Exchange (IDX), the Financial Services Authority (OJK), the Indonesia Central Securities Depository (KSEI) and the government to deliver measurable improvements.

“Regulators need to respond with concrete, measurable steps that international investors can verify,” Nafan said, adding that engagement with MSCI and global investors should be backed by evidence of reform implementation rather than policy commitments alone.

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