Jakarta. The government and House of Representatives are accelerating plans to overhaul the Indonesia Stock Exchange (IDX) through demutualization, a structural reform aimed at strengthening governance and transparency in Indonesia’s capital market.

The reform, mandated under the Financial Sector Development and Strengthening Law (P2SK), will require the bourse to first conduct a private placement before eventually pursuing an initial public offering (IPO), lawmakers and officials said.

House Commission XI Chairman Mukhamad Misbakhun said the transformation of IDX’s ownership structure is a key step in modernizing the market and improving oversight.

“Demutualization is intended to strengthen governance and transparency at the Indonesia Stock Exchange. We will regulate the mechanism more firmly, including who the new shareholders will be,” Misbakhun said during the Market Outlook 2026 event at the IDX building in Jakarta on Tuesday.

He added that the government should maintain a strategic presence in the new ownership structure, not as a profit-seeking investor but as a stabilizing force to safeguard national interests.

“The state does not need to be present to generate returns, but its influence is necessary to foster a healthy investment climate. This must be carefully formulated in the regulation,” he said.

Misbakhun signaled that policymakers want the process to move quickly as part of a broader capital market reform agenda that also includes free-float requirements, ultimate beneficial owner (UBO) transparency, and stronger market regulation.

“We want it to move as soon as possible. This is part of a broader restructuring that we want to accelerate. We are running the floating share policy, UBO arrangements, and demutualization in parallel,” he said.

When asked whether the process could be completed by the second quarter of 2026, Misbakhun replied briefly: “Hopefully.”

Under the proposed mechanism, demutualization will take place in several stages. The first step will be a private placement, as existing shareholders will need to divest part of their holdings before the exchange transitions into a publicly listed company.

“Private placement is inevitable because existing shareholders must release their stakes. After that, the exchange must comply with the governance standards of a public company. Transparency will be crucial,” Misbakhun said.

He stressed that the future ownership structure should include strong and credible investors capable of supporting the exchange’s technological development.

“New shareholders must have the capital strength to invest in exchange technology and infrastructure,” he added.

Chief of Economic Affairs Minister Airlangga Hartarto previously confirmed that the demutualization will be implemented gradually.

“It will begin with a private placement, followed by the option of an IPO. Typically the process starts with private placement and then proceeds to an IPO,” Airlangga said.

Meanwhile, Finance Minister Purbaya Yudhi Sadewa said the government aims to finalize all implementing regulations for the demutualization before the end of February 2026, with the drafting carried out together with the Financial Services Authority (OJK).

“All the regulations will be completed by the end of February. After that, it will just be a matter of implementation,” Purbaya said.

He acknowledged that discussions on the demutualization had taken considerable time and progress had been slow, making acceleration necessary so the next stages, including private placement and a potential IPO, would not face administrative delays.

The Financial Services Authority (OJK) has also indicated that implementation can only proceed once a government regulation (PP) serving as the official legal basis is issued.