IDX Strengthens Market Transparency Framework to Boost Investor Trust and Engagement

The Indonesia Stock Exchange (IDX), in conjunction with its partners, is making significant strides to enhance the transparency of its capital market operations. This initiative comes as a response to the need for a more robust and accessible financial environment that assures investors of the integrity and reliability of market transactions.

Comprehensive Capital Market Reforms

The IDX, along with various Self-Regulatory Organizations (SROs) such as the Indonesia Clearing and Guarantee Corporation (KPEI) and Indonesia Central Securities Depository (KSEI), is implementing widespread reforms aimed at deepening market transparency. Supported by the Financial Services Authority (OJK), these reforms are designed not only to increase the availability of essential information but also to build and maintain long-term investor confidence.

In its ongoing commitment to transparency, IDX has launched an array of disclosure initiatives which include publishing detailed company share ownership information. As of March 2026, IDX has made public the ownership details of shareholders who hold more than 1% of a company's shares. Furthermore, compliance with disclosure of ultimate beneficial owners for holdings exceeding 10% is being closely monitored to ensure that information remains current and accessible. Monthly reports also provide updated data on free-float ratios, allowing investors to better gauge the liquidity and stability of their investments.

The introduction of IDX Hotdesk aims to reinforce investor engagement by providing a direct communication channel for inquiries and feedback. This approach aligns with international standards and enhances the competitive edge and governance of Indonesia's capital market.

Resilience in the Face of Global Uncertainty

Despite a turbulent global financial landscape, Indonesia's capital market continues to showcase impressive resilience. As of June 24, the IDX Composite (IHSG) index closed at 5,883.88, with daily trading values averaging an impressive USD 1.44 billion (approximately IDR 24.6 trillion), marking a 36.3% year-to-date increase. Notably, the frequency of daily transactions rose by 49.4%, indicating a growing interest and participation from investors.

Domestic investment participation has also surged, with Single Investor Identification accounts hitting 28.70 million by June 23, revealing that retail investors now account for 52.5% of daily trading value. Additionally, equity mutual fund subscriptions have significantly outpaced previous years, with net subscriptions amounting to IDR 21.98 trillion (USD 1.35 billion) reported by April 20, compared to just IDR 6.27 trillion during the same period in 2025.

Advancements in Free Float Regulation

A key aspect of IDX's reform agenda is the ongoing implementation of the amended Listing Regulation No. I-A, which aims to increase the free-float ratio of listed companies. As of March 31, 2026, the average free-float ratio reached 23.09%, with nearly 61.8% of the 912 listed companies meeting the minimum requirements. The remaining companies have been granted transitional periods that extend through 2029, allowing them time to adjust and enhance their compliance.

Jeffrey Hendrik, President Director of IDX, emphasizes the reforms instigated by both regulators and SROs as a collective effort to bolster market transparency and governance. He reassured investors that, supported by strong economic fundamentals, the Indonesian capital market remains poised to offer alluring long-term investment prospects for both domestic and international stakeholders.

As IDX continues to advance its transparency initiatives, Australian investors and market analysts will be closely monitoring its developments, which could set a standard for other emerging markets striving for similar reforms. This ongoing commitment to enhancing market transparency not only serves investors but also strengthens Indonesia's position in the global financial landscape.