Jakarta. Financial Services Authority (OJK) Chairwoman Friderica Widyasari Dewi said Monday that regulators had taken extensive measures to ease pressure on Indonesia's stock market after the benchmark index closed below 5,000 points amid persistent concerns over market transparency and governance.

The Indonesia Stock Exchange (IDX) has faced mounting pressure following warnings from global index provider MSCI that the country could face reclassification to standalone market status if longstanding concerns about transparency and market integrity remain unresolved.

"We have taken various measures -- hopefully, the situation will improve," Friderica told reporters at the National Development Planning Agency (Bappenas) office in Jakarta.

Friderica also met President Prabowo Subianto at the Merdeka Palace on Monday to brief him on market conditions and ongoing capital market reforms.

"We informed the president that we would continue capital market reforms, particularly efforts to improve transparency and liquidity," she said.

According to Friderica, Prabowo placed particular emphasis on strengthening enforcement against market misconduct, including coordinated trading practices.

"The president's specific instruction was to ensure enforcement against those who have committed violations, such as coordinated trading and other practices," she said.

Friderica said consistent enforcement was essential to deter misconduct and restore confidence in the integrity of Indonesia's financial markets.

MSCI Concerns Drive Reform Push
In recent months, MSCI has raised concerns about transparency in share ownership and suspected coordinated trading practices on the IDX.

The concerns have intensified scrutiny of Indonesia's capital market regulations, particularly the disclosure of beneficial ownership and the availability of shares for public trading.

In response, the OJK launched a broad market reform program in March aimed at strengthening transparency, improving liquidity and bringing Indonesia's capital markets closer to international standards.

One of the measures is to double the minimum free-float requirement for listed companies to 15%, from the previous 7.5%.

Free float refers to shares available for public trading rather than those held by controlling shareholders or other strategic investors.

Regulators have also proposed stricter ownership disclosure requirements, including lowering the reporting threshold for significant shareholdings from 5% to as little as 1%.

The measures are intended to improve visibility into corporate ownership structures and strengthen investor confidence in the fairness and transparency of trading.

MSCI has not made a final decision to reclassify Indonesia as a standalone market, leaving the country's market status dependent on the outcome of its assessment and the progress of regulatory reforms.

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