Jakarta. The Indonesia Stock Exchange (IDX), together with the Indonesian Central Securities Depository (KSEI), and with the support of the Financial Services Authority (OJK), is accelerating initiatives to strengthen the transparency and integrity of the Indonesian capital market. 

This step is part of a broader reform agenda to ensure a more credible, adaptive market ecosystem capable of meeting the needs of both domestic and global investors.

The acceleration follows a constructive dialogue with MSCI. Through intensive communication, various inputs were translated into concrete, measurable work programs with clear implementation timelines. This approach demonstrates the OJK and self-regulatory organizations' (SROs) commitment to maintaining trust and enhancing the competitiveness of the Indonesian capital market internationally.

Indonesia is preparing to adjust the Exchange Regulation Number I-A concerning the Listing of Shares and Equity-Type Securities Other Than Shares Issued by Listed Companies. This is expected to take effect next month. Indonesia is currently gathering input from stakeholders until Feb. 19. In the proposed rule changes, the IDX will increase the minimum free float requirement for Listed Companies from 7.5% to 15%. The fulfillment of the 15% minimum free float requirement will be implemented in stages, with intermediate targets set for each stage. The IDX will provide ongoing monitoring and support to ensure the final target is achieved within the stipulated timeframe. This policy is believed to strengthen market deepening and align with the eight action plans for accelerating integrity reforms in the Indonesian capital market.

Acting IDX President Director Jeffrey Hendrik said that the increase in the minimum limit would take place in stages to provide listed companies with enough time to adjust their ownership structures and corporate plans. 

"We understand that each company has different characteristics. The IDX is preparing a transition phase, monitoring, and mentoring to ensure a measurable implementation while maintaining trading stability," Jeffrey said.

Transparency is being strengthened by expanding the disclosure of share ownership data. While previously published share ownership data focused on ownership above 5%, going forward, the IDX will add monthly disclosures for ownership above 1%. This step will provide a more comprehensive picture of the shareholder structure and help investors make more informed investment decisions.

According to Jeffrey, improving data quality is a crucial element in building trust. 

"Investors need clear, consistent, and easily accessible information. With increased transparency, we strengthen the fairness and reputation of the Indonesian capital market," he said.

From a data infrastructure perspective, KSEI is refining investor classification in the single investor identification (SID) system. At present, SID recognizes nine types of investors. KSEI will collaborate with market players to add several data fields to increase data granularity. This refinement will be achieved by adding 28 investor classifications as subcategories under the corporate (CP) and others (OT) investor types within SID.

The reforms also target the quality of good corporate governance. In addition to increasing the minimum free float requirement for Listed Companies from 7.5% to 15%, the IDX will require continuing education for directors, commissioners, and audit committees, while emphasizing the importance of accounting or financial competency for officials responsible for these functions. 

Efforts are also underway to improve the quality of prospective listed companies by increasing financial, operational, and governance requirements, thereby increasing investor trust and confidence. This is expected to further enhance the quality of reporting and information disclosure and align with global best practices.

All of these initiatives were developed through a participatory process. The IDX actively engages with capital market stakeholders, including associations, listed companies, and exchange members. To support implementation, the IDX provides a hot desk service as a consultation center to ensure prompt and appropriate responses to any clarification needs.

The IDX, KSEI, and OJK affirm that capital market reforms will continue to be implemented consistently. 

This series of steps is expected to deliver tangible improvements in transparency, strengthen investor confidence, and bring about the fact that Indonesia's capital market is increasingly competitive on the global stage.

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