Jakarta. The Financial Services Authority (OJK) on Sunday unveiled what it described as a “bold and ambitious” package of capital market reforms, following the resignation of senior officials amid a week of severe market turbulence.

The reform package, announced by OJK’s acting head, Friderica Widyasari, focuses on four key policy areas: minimum free-float requirements, transparency of share ownership, trading governance, and law enforcement.

Friderica said the reforms are aimed at strengthening the integrity and competitiveness of Indonesia’s capital market while aligning it with global standards and the expectations of international index providers.

The reform agenda was drawn up in coordination with self-regulatory organizations (SROs) as part of a broader effort to restore credibility following recent volatility.

“OJK, together with the SROs, is committed to implementing bold and ambitious reforms in Indonesia’s capital market, in line with best practices and global expectations,” Friderica said at a meeting with market participants and regulators at the Indonesia Stock Exchange (IDX).

“We understand the problems and are working collectively to find solutions that will strengthen market integrity,” she said.

One of the core measures is a plan to raise the minimum free-float requirement for listed companies to 15% from the current 7.5%, bringing Indonesia closer to international norms. Existing listed companies will be given a phased transition period, while new issuers will be required to meet the higher threshold from the time of their initial public offerings.

OJK also underlined the need to strengthen transparency around Ultimate Beneficial Ownership (UBO) to improve market credibility. The Central Securities Depository (KSEI) will enhance the quality and granularity of share ownership data, including investor classification in line with global practices. The data will be published through the IDX to improve public disclosure.

On governance, OJK reaffirmed its commitment to completing the demutualization of the IDX, as mandated by law, to enhance independence, efficiency, and the mitigation of conflicts of interest. Stronger law enforcement will also be prioritized, particularly against transaction manipulation and the dissemination of misleading information that harms retail investors.

Additional reforms include improving the governance quality of listed companies, such as mandatory continuing education for directors, commissioners, and audit committee members, as well as certification requirements for financial statement preparers. On market deepening, OJK said it will work with the government, Bank Indonesia, and other stakeholders to accelerate development on both the demand and supply sides, as well as market infrastructure, to strengthen the role of the capital market as a long-term funding source.

Friderica stressed that the reform agenda will require close coordination across institutions.

“We cannot work alone. Synergy with the government, SROs, industry players, and all stakeholders will continue to be strengthened to ensure these reforms are carried out in a sustainable manner,” she said.

The announcement follows a week of turbulence that sent Indonesia’s benchmark stock index down nearly 7% and erased about Rp 1,198 trillion ($71 billion) in market capitalization at the IDX, reducing total market value to Rp 15,046 trillion ($896 billion).

The sell-off was triggered by criticism from MSCI Inc, which flagged limited transparency and the risk of coordinated transactions in Indonesia’s equity market.

The turmoil has already led to a series of high-level resignations, including IDX CEO Iman Rachman, followed by OJK chairman Mahendra Siregar and his two deputies, Inarno Djajadi and Aditya Jayaantara.