ASIATODAY.ID, JAKARTA — The Indonesia Stock Exchange (IDX) is currently reviewing various demutualization models adopted by major stock exchanges around the world.
The assessment aligns with the government’s plan to finalize a Government Regulation Draft (RPP) on Exchange Demutualization, mandated by the Financial Sector Development and Strengthening Law (P2SK).
Demutualization refers to the transformation of a stock exchange from a member-owned entity into a share-based corporation with broader ownership, including public shareholders. This shift is expected to enhance governance, transparency, and competitiveness in Indonesia’s capital market.
IDX Studies Best Practices from Global Exchanges
IDX Director of Corporate Valuation, I Gede Nyoman Yetna, stated that the demutualization RPP is still under review and is being supported by an extensive internal study.
“We are still preparing the analysis required to support the RPP, including key considerations once demutualization becomes effective,” Nyoman said on Monday, November 24, 2025.
He noted that IDX is actively comparing multiple global demutualization frameworks to determine the most suitable model for Indonesia’s market structure.
Finance Ministry: Demutualization Will Reduce Conflicts of Interest
Director General of Financial Sector Stability and Development at the Ministry of Finance, Masyita Crystallin, emphasized that the RPP aims to restructure IDX ownership. The exchange, which is currently owned by brokerage members, would transition into a corporation with diversified shareholders.
“Demutualization will open IDX ownership to entities beyond securities companies, separating membership from ownership. This is a strategic step to reduce potential conflicts of interest, strengthen governance, and improve professionalism,” she said.
Masyita highlighted that several countries—such as Singapore, Malaysia, and India—have already modernized their exchanges through demutualization.
Boosting Innovation and Market Liquidity
According to Masyita, a modernized and professionally governed stock exchange will better adapt to global financial dynamics.
The new structure will accelerate the development of innovative products, including: derivatives instruments, exchange-traded funds (ETFs), infrastructure financing instruments, and energy transition financing tools.
This transformation is expected to deepen Indonesia’s capital market and enhance overall market liquidity.
“Through demutualization, we aim to align IDX governance with international best practices while safeguarding public interest and maintaining market integrity,” she added.
IDX Now the Largest Capital Market in ASEAN
Amid structural reforms, IDX is also celebrating a major milestone.
Director Jeffrey Hendrik announced that Indonesia’s capital market has officially become: Top 20 largest in the world and number 1 in ASEAN by market capitalization.
“Our market capitalization has reached IDR15,300 trillion, daily transaction value IDR16.9 trillion, and the investor base has grown to 19.5 million people,” Jeffrey said at the 2025 Medan Sharia Investor City event on Friday.
The strong performance is reflected in the Jakarta Composite Index (JCI/IHSG), which has surged nearly 19% year-to-date, closing at 8,414.35, up from 7,103.14 at the start of the year.
Sharia Market Driving Global Recognition
Jeffrey also highlighted the strength of Indonesia’s sharia capital market ecosystem, supported by 11 OJK regulations and 26 DSN-MUI fatwas, governing every stage of sharia-compliant investment.
This robust framework has earned IDX multiple “Best Islamic Capital Market” awards internationally.
OJK data shows:
ISSI (Indonesia Sharia Stock Index): 282.10
Market capitalization: IDR9.32 quadrillion
Listed sharia stocks: 618
YTD growth: 30.81%
A Capital Market at the Crossroads
With Indonesia posting historic growth and global recognition, the government’s move to reshape IDX governance marks a turning point.
Demutualization is expected to:
Strengthen transparency
Increase investor protection
Open ownership to the public
Align IDX with international best practices
Prepare Indonesia’s market for deeper global integration
“Through demutualization, we aim to ensure IDX governance meets global standards while safeguarding public interest and market integrity,” Masyita said.
Indonesia’s capital market now stands at a strategic moment: soaring in global ranking while undergoing its most significant structural reform in decades. (AT Network)
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