BEI Demutualization is Considered to Strengthen Market Governance and Professionalism

JAKARTA - The Financial Services Authority (OJK) together with the Indonesia Stock Exchange (IDX) has begun to study the exchange's demutualization plan as a step to minimize potential conflicts of interest.

Deputy Commissioner for the Oversight of Capital Market Investment Management and Securities Institutions of the OJK, Eddy Manindo Harahap, said that the plan to demutualize the IDX has a strong legal basis through Law Number 4 of 2023 concerning the Development and Strengthening of the Financial Sector (UU P2SK).

He explained that currently the government through the Ministry of Finance is drafting a Government Regulation (RPP) as an implementing regulation of the law, and OJK is also involved to provide input.

"Now there is a government regulation draft, RPP which is being developed by the government in this case the Ministry of Finance. Well we are also asked to give our opinion on the draft, and now it is still in the process," he said in a press conference, at the BEI Building, Tuesday, December 30.

According to Eddy, demutualization is not a negative policy, but a practice that has been widely implemented in various countries.

He assessed that this policy aims to strengthen market governance by reducing the potential for conflicts of interest and increasing professionalism.

"And indeed, if we look at the purpose of this demutualization, it is actually to lead to positive market governance, then focus on reducing conflicts of interest and increasing professionalism," he explained.

Regarding the aspect of supervision, Eddy emphasized that the role and function of the OJK would continue as usual even though there were changes in the institutional structure at the IDX.

Meanwhile, the President Director of the IDX, Iman Rachman, said that in the demutualization process, the exchange was in the position as a policy object, considering that the decision was in the hands of shareholders, regulators, and the government.

However, the IDX still contributes actively by preparing various supporting studies.

"If the position of the exchange is more as an object. That is, this is done at the shareholder, supervisor, OJK, and Ministry of Finance levels, including the PP," he said.

Iman added that the IDX is currently preparing a study on the most optimal organizational structure after demutualization by referring to the practice of exchanges in a number of other countries.

"But maybe as a stock exchange, we are trying to help prepare a study on how the optimal structure is different from the Indonesian stock exchange with the demut," he said.

He emphasized that the study aims to ensure the implementation of good governance and maintain the independence of the exchange after changes in ownership structure.

"Why? Because we hope, so because we hope together that related to governance later after the demut it is mainly related to conflict of interest and related to its independence it remains maintained," he said.