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STOCK MARKET - State investment management agency Danantara has submitted a proposal to acquire shares in the Indonesia Stock Exchange (IDX) as part of the exchange's planned demutualization.
The process will transform the IDX from a member-controlled organization into a profit-oriented company with a share ownership structure.
IDX President Director Jeffrey Hendrik stated that Danantara's proposal is currently under consideration. The IDX is also awaiting offers from other parties interested in becoming shareholders of the exchange.
"Danantara's proposal is under our consideration, while we are still opening opportunities for other parties to submit bids," Jeffrey told reporters on Wednesday (10/28/2026).
Jeffrey added that the Ministry of Finance and Bank Indonesia (BI) have not submitted bids to purchase IDX shares thus far. However, the exchange remains open to other prospective investors.
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The IDX demutualization is a capital market reform agenda mandated by law since 2023. The process was accelerated after global index provider MSCI issued an early warning in January 2026 regarding the Indonesian stock market.
In October, MSCI issued another warning regarding the possibility of downgrading the Indonesian stock market's status to a standalone market, which could potentially affect the domestic capital market's appeal to global investors.
Amidst this pressure, the rupiah traded near a record low, while the Jakarta Composite Index (JCI) corrected by 1.65% by Wednesday midday trading. Cumulatively, the JCI has fallen by about 40% year-to-date.
Through demutualization, the IDX will transition into a company with share ownership, rather than remaining an organization controlled by exchange members as it is currently. This change is expected to strengthen governance and align the IDX's structure with other exchanges in the region.
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Danantara Submits Bid for IDX Shares Amid Exchange Demutualization Plans
In September 2026, the Financial Services Authority (OJK) issued IDX demutualization regulations that allow Danantara, the Ministry of Finance, and BI to become shareholders.
The regulations limit a single party's ownership to a maximum of 50%. Several local media reports previously stated that Danantara has the opportunity to take up to a 40% ownership stake in the IDX.
Jeffrey explained that the IDX will issue new shares to accommodate the new shareholders. Meanwhile, an initial public offering (IPO) will be conducted at a subsequent stage.
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