IDX Introduces Market Transparency Initiatives to Strengthen Investor Trust and Engagement

The Indonesia Stock Exchange (IDX), in collaboration with various Self-Regulatory Organizations (SROs) including the Indonesia Clearing and Guarantee Corporation (KPEI) and the Indonesia Central Securities Depository (KSEI), is embarking on significant reforms aimed at bolstering transparency in the capital markets of Indonesia. Supported by the Financial Services Authority (OJK), these changes are designed to systematically enhance information access and fortify long-term investor confidence, a crucial foundation for a thriving financial ecosystem.

Sustaining Market Transparency

IDX's commitment to transparency is reflected in its ongoing disclosure initiatives. The exchange is actively making various share ownership data available to the public through its website. The initiatives include publishing detailed information regarding shareholders holding more than 1% of a listed company’s shares, as well as the ultimate beneficial owners of shares exceeding 10%. Since March, this push for transparency has been underscored by continuous updates of free-float data in monthly reports, ensuring that both investors and stakeholders remain informed about market dynamics.

Additionally, IDX has established the IDX Hotdesk – an open communication channel that allows investors to obtain information and provide feedback. This initiative promotes engagement between the exchange and its investors, positioning IDX as a transparent and accountable entity in the capital market. These steps not only aim to enhance the integrity of the Indonesian market but also to align it more closely with international best practices, ultimately increasing its competitiveness.

Strong Market Activity Amid Global Uncertainty

Despite facing increased global economic uncertainty, Indonesia's capital market has exhibited notable resilience. The IDX Composite Index (IHSG) recently closed at 5,883.88, showcasing robust trading activity. On average, the daily trading value soared to USD 1.44 billion (IDR 24.6 trillion), marking a remarkable 36.3% year-to-date increase. This surge in activity also includes a 49.4% rise in daily trading frequency, reaching 2.67 million transactions.

Moreover, the domestic participation in the market continues to expand, with Single Investor Identification (SID) accounts hitting 28.70 million as of June 23. Retail investors account for 52.5% of the daily trading value, indicating a healthy involvement of the general public in Indonesia’s securities market. Net subscriptions into equity mutual funds have also increased significantly, amounting to IDR 21.98 trillion (USD 1.35 billion) as of April 20, a substantial rise compared to the same period in 2025 which recorded IDR 6.27 trillion.

Advancing Free Float Reform

A primary focus of IDX's agenda includes the phased implementation of revised Listing Regulation No. I-A. As of March 31, the average free-float ratio among listed firms reached 23.09%, with 61.8% of the 912 listed companies meeting the established minimum criteria. The IDX has extended transition periods to help the remaining 323 companies comply with the new regulations by 2029, actively engaging with these issuers to support their journey towards compliance.

In a recent statement, Jeffrey Hendrik, President Director of IDX, emphasized, "The reforms introduced by regulators and SROs underscore a mutual commitment to improving transparency and governance in the market. With solid economic and corporate fundamentals, we are confident that the Indonesian capital market will continue to present attractive long-term investment opportunities for both domestic and international investors."

The initiatives being pursued by IDX not only aim to strengthen trust with existing investors but also to become a magnet for foreign investments, by creating a more transparent and user-friendly market environment. As the capital market evolves, these steps signify a promising pathway for economic growth and investor participation in Indonesia’s evolving financial landscape.