Indonesia’s sovereign investment arm Danantara is considering becoming a shareholder in the Indonesia Stock Exchange (IDX) once the bourse completes its long-awaited demutualisation, while stressing that such a move would not create a conflict of interest.
Danantara chief investment officer Pandu Sjahrir said the fund sees no conflict in holding shares in the exchange, noting that regulatory authority remains with the Financial Services Authority (OJK).
“There is no conflict of interest, because the regulator is OJK,” Sjahrir told local media on Sunday, adding that shareholders would not interfere in the exchange’s regulatory or supervisory functions.
He said demutualisation would open the door for institutional investors to participate in IDX ownership, shifting the exchange away from its current member-owned structure dominated by securities firms.
Separately, Danantara chief executive Rosan Roeslani said the fund is open to becoming an IDX shareholder after demutualisation is implemented, though he emphasised that no decision has been made on the timing, stake size, or investment structure.
He also said the new ownership framework will not be limited to domestic investors and that foreign investors could also participate once the exchange’s ownership is opened up.
Demutualisation has been discussed for more than two decades, dating back to the early 2000s, as part of efforts to strengthen governance and modernise Indonesia’s capital markets. While repeatedly delayed, the plan has regained momentum in recent years alongside broader market reform initiatives.
The push to demutualise the exchange has been reinforced by the enactment of the Financial Sector Development and Strengthening Law (UU P2SK), which provides a legal foundation for restructuring financial market institutions, including changes to ownership and governance models for self-regulatory organisations.
Under the demutualisation plan, IDX will be transformed into a corporate entity with a wider shareholder base, enabling ownership beyond exchange members and potentially opening the way for strategic investors and, in the longer term, a public listing.
The same move has been successfully implemented by other stock exchanges in Hong Kong, Singapore, Malaysia, and India, which not only changes the ownership structure but also drives product innovation and increases operational efficiency.
Danantara’s interest in IDX ownership comes as the sovereign investment arm prepares to play a larger role in Indonesia’s capital markets, while officials emphasise that discussions remain at an early stage and are subject to regulatory approval.
