IDX Opens Door to Danantara Before IPO, Exchange Demutualization Begins

The Indonesia Stock Exchange (IDX) has confirmed that the Danantara Investment Management Agency (BPI Danantara) will become a shareholder before the exchange conducts its initial public offering (IPO). The confirmation marks a new phase in the exchange's demutualization after shareholders approved amendments to the articles of association at an Extraordinary General Meeting of Shareholders (RUPSLB) on Wednesday (28/10).

IDX President Director Jeffrey Hendrik said the due diligence process for prospective strategic investors such as Danantara is underway. Nevertheless, he expects the mechanism for outside parties to enter will be through a new share issuance or rights issue first. "The process will likely be like that. So a rights issue first, then an IPO, but that will be discussed further with the shareholders," Jeffrey said in Jakarta.

The amendment to the articles of association ends the restriction on exchange ownership that previously applied only to exchange members. Now, in accordance with Financial Services Authority (OJK) Regulation Number 13 of 2026 on Shareholders of the Stock Exchange, ownership is open to outside parties. The POJK is a derivative of Law Number 4 of 2026, which mandates OJK to regulate exchange shareholders.

The regulation explicitly names three ministries/institutions that may become IDX shareholders: the Ministry of Finance, Bank Indonesia (BI), and BPI Danantara. However, Jeffrey stressed that demutualization will only take effect after obtaining OJK approval and notification from the Ministry of Law. "In accordance with the laws and regulations, the amendment to the articles of association takes effect after obtaining approval," he explained.

The move is part of efforts to strengthen the fundamentals of Indonesia's capital market so it can compete globally. In addition, IDX has set a target for the average daily transaction value (RNTH) of Rp21 trillion in 2027, which will be supported by the listing of 25 new shares through IPOs among a total of 905 new securities listings. Jeffrey emphasized that all these efforts are aimed at building a higher-quality capital market and supporting national economic growth.

With Danantara's entry, the exchange's ownership structure will involve the state more directly. This has the potential to strengthen synergy between fiscal, monetary, and strategic investment policies. However, the rights issue and IPO processes need to be scrutinized so as not to disrupt market liquidity. Market participants are awaiting details of the rights issue scheme, including price and ratio, which will be discussed with shareholders. Going forward, the success of demutualization will depend on transparency and regulatory certainty.