Indonesia Stock Exchange Drives Market Reform to Bolster Investor Trust

The Indonesia Stock Exchange, working alongside the KPEI and KSEI, is systematically tightening disclosure requirements. Since March, listed companies have been obligated to publish share ownership data for anyone holding over 1% of equity, alongside disclosures regarding ultimate beneficial owners with stakes above 10%. This push for clarity is bolstered by the IDX Hotdesk, an open channel designed to facilitate direct feedback and information requests from the investing public.

Despite global market turbulence, domestic participation remains a primary driver of liquidity. As of June 23, the number of Single Investor Identification accounts climbed to 28.70 million, with retail participants now accounting for 52.5% of daily trading value. Financial metrics underscore this resilience: average daily trading value hit USD 1.44 billion, marking a 36.3% increase year-to-date, while transaction frequency surged by nearly half.

Central to these structural changes is the phased implementation of Listing Regulation No. I-A. Currently, 61.8% of the 912 listed companies meet the mandatory minimum free-float requirements, which averaged 23.09% as of March 31. For the remaining 323 firms, the exchange has established transition windows stretching through 2029. IDX President Director Jeffrey Hendrik noted that these measures are intended to leverage strong corporate fundamentals to maintain the country's status as a competitive destination for international capital.