Jakarta. Indonesia is stepping up its capital market reform agenda, with authorities rolling out a series of measures designed to enhance transparency, deepen liquidity, and reinforce investor trust.

The Financial Services Authority (OJK), in collaboration with the Indonesia Stock Exchange (IDX) and the Indonesian Central Securities Depository (KSEI), has completed four strategic initiatives as part of a broader push to strengthen market integrity and elevate Indonesia’s standing among global investors and index providers such as MSCI.

These measures include the public disclosure of share ownership above 1%, an increase in the minimum free float threshold to 15%, enhanced granularity of investor data classifications, and the implementation of High Shareholding Concentration (HSC) disclosures.

Through these initiatives, investors now have access to more detailed insights into shareholding structures, ranging from shareholder identities and ownership stakes to controlling interests, affiliations, and beneficial ownership. Information on shareholdings exceeding 1% is publicly available on the IDX website, providing greater visibility and supporting more informed investment decisions.

Liquidity enhancement remains a key priority. By raising the minimum free float requirement to 15%, regulators aim to increase the availability of shares in the market, thereby improving trading activity. IDX Acting President Director Jeffrey Hendrik said the policy also introduces a refined definition of free float and strengthens share classification standards, including during initial public offerings (IPOs). A transition period has been implemented to help listed companies adjust and mitigate potential short-term market pressures.

Transparency efforts have also been expanded through more detailed investor classification data. The number of investor categories has been significantly increased, from 9 to 39, offering a clearer picture of market participation and composition. This data is accessible via IDX’s public disclosures, enhancing market clarity for both domestic and international stakeholders.

In addition, Indonesia has adopted global best practices by introducing High Shareholding Concentration (HSC) disclosures, similar to those implemented by Hong Kong Exchanges and Clearing (HKEX). These disclosures identify stocks with concentrated ownership among a limited number of parties, helping investors better assess potential risks and ownership dynamics. HSC information is publicly available through IDX announcements, reinforcing transparency and investor protection.

“Greater transparency in share ownership and HSC disclosures will significantly improve the quality of market information and enable investors to better understand ownership structures,” Jeffrey said.

Looking ahead, IDX reaffirmed its commitment to continuing reforms focused on transparency, liquidity, and market structure enhancement. Ongoing efforts include strengthening governance capacity and conducting extensive outreach programs, both online and offline, to engage market participants and foster open dialogue.

Market observer Hans Kwee welcomed the reforms, describing them as a positive step toward improving Indonesia’s capital market integrity and meeting global investor expectations. “This is a strong move that aligns with MSCI requirements and elevates the transparency standards of Indonesia’s capital market,” he said.

He added that improved disclosure of share ownership and more detailed investor data would create a more transparent market environment, while the higher free float threshold is expected to boost liquidity by increasing the supply of tradable shares.

With consistent reform and proactive engagement, Indonesia is positioning its capital market as an increasingly attractive destination for both domestic and global investors.

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