JAKARTA, Feb 4 - Indonesia's financial regulator announced that a draft of proposed market rules will be released on Wednesday, part of a rapid response to investor alarm that contributed to a large stock-market rout last week.
Officials said the package of rules will include an amendment to raise the minimum level of free-float shares for listed companies. The draft will be available for comment from market participants and the public for a 10-day period, allowing stakeholders to submit feedback ahead of further revisions.
Hasan Fawzi, interim chief supervisor of capital markets at OJK, said regulatory authorities are aiming to have the regulations published by March 2026. "The target for the publication of the regulation is March 2026," he said.
On the speed of follow-up, Hasan said OJK is committed to an expedited review process. "OJK are committed to move quickly to review and provide suggestions and guidance for revisions before we implement the proposed regulation," he said.
The move comes after a market shock last week when a warning from index provider MSCI precipitated a wave of selling. The Jakarta Composite Index fell as much as 16.7% over two days, and market exits tied to that warning amounted to roughly $80 billion in losses during the episode.
MSCI had cautioned that Indonesia, a G20 economy with about $1.4 trillion in economic size, could be downgraded from emerging market status to frontier market status, citing issues related to ownership and trading transparency. Indonesian authorities have pledged capital market governance reforms in response to the concerns raised.
Authorities say the consultation process will be used to refine the draft. Beyond the free-float amendment, OJK has not published further regulatory specifics in this release. The timeline set by OJK puts publication of a finalized regulation within a little over a year.
Context and next steps
Market participants and members of the public will have 10 days to provide feedback on the draft once it is released. OJK has indicated it will seek to incorporate stakeholder input during its review and guidance process before implementation.