The Indonesia Financial Services Authority has issued rules establishing the legal framework for demutualizing Indonesia’s stock exchange, advancing a capital market reform priority outlined in recent policy updates. Effective upon promulgation on Sept. 17, 2026, the framework allows exchange shares previously restricted to exchange members to be owned by Indonesian individuals and legal entities, including nonmembers. Share ownership will be separated from exchange membership, while the exchange must maintain its independence, market integrity and regulatory and supervisory functions. A shareholder may ordinarily hold up to 5% of issued shares, with Indonesia Financial Services Authority approval required for larger stakes to prevent dominance or concentrated control. No party may own a majority stake directly, indirectly or through affiliates. The rules also require prior fit and proper assessments for directors and commissioners and address the separation of regulatory, supervisory and commercial functions, as well as dividends and exchange reporting.
2026-09-21OJK
Indonesia Financial Services Authority establishes stock exchange demutualization framework with 5% standard ownership cap
The Indonesia Financial Services Authority has established a framework for demutualizing Indonesia’s stock exchange, allowing Indonesian individuals and legal entities, including nonmembers, to own exchange shares. Shareholdings are ordinarily capped at 5%, larger stakes require regulatory approval, and majority ownership is prohibited. The rules took effect on Sept. 17, 2026.