Chesa Andini Saputra, Jakarta – The Indonesia Stock Exchange (IDX) has tightened its disclosure rules, requiring shareholders with ownership stakes of 1% or more to disclose their identities, down from the previous 5% threshold.
The policy is part of Indonesia's broader capital market reform agenda, aligned with recommendations from global index provider MSCI.
Acting IDX President Director Jeffrey Hendrik said on Monday that the new rule was not adopted arbitrarily but followed extensive study and consultations with MSCI.
"Why 1% and not another figure? We referred to best practices at several global exchanges. If we look at it, the country currently using the 1% threshold is India," Jeffrey said.
"The structure of India's market and its investor base is relatively similar to Indonesia's market structure and investor mix," he added.
Jeffrey said greater transparency for shareholders owning more than 1% is a key component of the capital market reforms proposed to MSCI. The measure is expected to improve market integrity, strengthen corporate governance, and bolster global investor confidence in Indonesia's capital markets.
The move follows recent market volatility. Two weeks ago, IDX's benchmark index slid after MSCI released a report criticizing limited transparency in Indonesia's stock market and raising concerns over alleged coordinated trading by controlling shareholders that could potentially harm investors.