Indonesia's Financial Services Authority extends share buyback relief to June 2027 and calls for stronger market oversight

Indonesia's Financial Services Authority (OJK) has extended permission for issuers to repurchase shares without approval from a general meeting of shareholders through June 2027, alongside measures targeting ownership transparency and trading surveillance. Buybacks remain subject to prudential safeguards, companies' financial capacity and disclosure obligations. Issuers must also comply with minimum free float requirements and return repurchased shares to circulation. OJK is calling on the Indonesia Stock Exchange (IDX) to refine its existing High Shareholding Concentration (HSC) methodology and mechanisms through greater transparency and participation by independent parties outside self-regulatory organizations in a working committee. The changes aim to give investors and global index providers more transparent information on concentrated share ownership. IDX is also being urged to improve its identification of unusual transaction patterns, detection of suspected coordinated trading and follow-up on surveillance findings. The measures continue capital market reforms under way since January 2026, including previously outlined improvements to ownership disclosure and a phased increase in minimum free float to 15%. They come as MSCI consults on a potential change in Indonesia's classification from Emerging Market to Standalone Market. Separately, FTSE Russell's Oct. 6 assessment, reviewed at the press conference, retained Indonesia's Secondary Emerging Market status without placing it on a downgrade watchlist.