KAKI, IICD, and BEI Encourage Ownership Transparency to Strengthen Investor Confidence

JAKARTA - Corporate ownership transparency is increasingly becoming an important factor in strengthening the integrity of the capital market, increasing investor confidence, and encouraging the implementation of good corporate governance (good corporate governance).

Transparency regarding the parties who own and control the company up to the ultimate beneficial owner (UBO) level is considered to be one of the main foundations in creating a more transparent, accountable, and credible capital market.

The commitment is the focus of a forum entitled Strengthening Market Integrity: Towards a New Era of Ownership Transparency in the Capital Market which was held by the Indonesian Anti-Corruption Coalition (KAKI) and the Indonesian Institute for Corporate Directorship (IICD) in collaboration with the Indonesia Stock Exchange (IDX) and supported by the Center for International Private Enterprise (CIPE), the Indonesian Issuers Association (AEI), and the UN Global Compact Network Indonesia (IGCN), at the Main Hall of the Indonesia Stock Exchange, Jakarta, Thursday, June 18, 2026.

Meanwhile, in this forum, regulators, business actors, business associations, international organizations, civil society organizations, and various other stakeholders will meet to discuss policy developments, implementation challenges, and best practices in improving corporate ownership transparency in Indonesia.

A number of sources who attended the event included the Chairman of the Indonesian Institute for Corporate Directorship (IICD) Rudiantara; Chairman of the Indonesian Anti-Corruption Coalition Erry Riyana Hardjapamekas: Transaction and Compliance Supervision Director of the Indonesia Stock Exchange (IDX) Kristian S. Manullang: Head of the Directorate of Issuer and Public Company Supervision 2 OJK Nailin Ni'mah.

Furthermore, the Senior Advisor to the Directorate of Listing of the Indonesia Stock Exchange, Saptono Adi Junarso; Director of the Legal Affairs Ministry, Dr. Andi Taletting Langi; Director of the Anti-Corruption and Governance Center, Center for International Private Enterprise (CIPE) Frank Brown; and President of the UN Global Compact Network Indonesia (IGCN) Y.W. Junardy, and the discussion was guided by the KAKI Advisory Committee and IGCN Advisor Natalia Soebagjo.

The Chairman of the Indonesian Institute for Corporate Directorship (IICD) Rudiantara emphasized that trust (trust) is the most valuable asset in the capital market.

According to him, in addition to operational performance and business achievements, investor confidence is the main factor that affects market perceptions of a company.

He explained that trust is built by three main components, namely capability, integrity, and communication.

Rudiantara explained that capability reflects the company's ability to run a business and generate good performance.

Meanwhile, integrity shows the consistency between what is conveyed to the public and what the company actually carries out. Communication plays a role in building good relationships and understanding with stakeholders.

"In the capital market, trust is not only determined by the company's performance figures. Investors also see integrity and how companies build good communication. Transparency is one of the important instruments to strengthen that integrity," said Rudiantara.

"Integrity is a very determining factor in building investor confidence. Transparency is one way to strengthen that integrity," he said.

He added that transparency is not a new concept because it has become part of the regulator's demands and the basic principle of implementing good corporate governance. However, transparency remains relevant and increasingly important in strengthening investor confidence in the entire capital market ecosystem.

According to Rudiantara, without adequate capacity, integrity, and communication, both regulators, exchanges, issuers, and other market participants will find it difficult to gain public confidence. Therefore, all stakeholders need to make these three aspects the main focus in building a healthy and sustainable capital market.

On the same occasion, the Director of Transaction and Compliance Supervision of the IDX, Kristian Sihar Manullang, said transparency and integrity were the main foundations in building a healthy, reliable, and sustainable capital market.

According to him, investor expectations for the quality of governance and openness to information continue to increase. Therefore, transparency of corporate ownership structure is now an aspect that is increasingly being considered by investors.

"Investors no longer just want to know the company's performance, but also want to know who actually owns and controls the company they invest in. This is the basis of our regulatory reform and strategic direction," said Kristian.

Kristian explained that the IDX had implemented changes to the monthly report on the registration of share ownership which took effect from April 1, 2026. The IDX requires companies to report information on controlling shareholders, ultimate beneficial owners (UBO), and shareholders with a minimum ownership of 10 percent.

In addition, OJK together with SRO also lowered the threshold for the publication of share ownership to 1 percent and this policy is expected to provide a clearer picture of the company's ownership structure and its relationship with related parties.

BEI has also updated Regulation Number I-A concerning the Listing of Shares and Equity-Based Securities Other than Shares issued by listed companies, and the rules that have been in effect since March 31, 2026 include an increase in the free float requirement to increase the number of shares in circulation in the public so that it can increase market liquidity.

In addition, regulatory updates are also directed to increase the standard of transparency and corporate governance to be more in line with international best practices.

Kristian emphasized that UBO disclosure is not merely fulfilling a regulatory obligation, but also a form of the company's commitment to information openness and good governance.

"Through collaborative reforms, we can strengthen the credibility of the Indonesian capital market, increase investor confidence, and encourage the competitiveness of the Indonesian capital market at the global level," he said.

During the discussion, the speakers agreed that openness of information regarding ownership and control of companies up to the UBO level is an important factor in strengthening market integrity and increasing investor confidence. Ownership transparency not only supports compliance with regulations, but also reflects the company's commitment to ethical business practices and good governance.

The speakers also reviewed various regulatory developments aimed at strengthening transparency in the Indonesian capital market. Policies that encourage shareholder information disclosure, strengthening free float provisions, and increasing corporate governance and transparency standards are seen as strategic steps to improve the quality of information disclosure and investor protection.

In addition, the forum also discussed a number of challenges that are still faced in the implementation of ownership transparency. Challenges include the UBO identification process, the readiness of data infrastructure and investor registration systems, to the need for regulatory harmonization and coordination between agencies. Therefore, closer collaboration is needed between regulators, the private sector, business associations, and civil society organizations so that ownership transparency can be effectively implemented.

From a global perspective, corporate ownership transparency has become an important part of the international agenda to strengthen business integrity, prevent the misuse of legal entities, and support efforts to eradicate corruption and money laundering. Ownership openness is also increasingly seen as a factor that can increase economic competitiveness and strengthen investor confidence in a country.

Meanwhile, from the business world, the implementation of ownership transparency requires internal readiness of companies, including strengthening governance systems, better reporting mechanisms, and processes to accurately and sustainably identify the true owners of benefits.

"Ownership transparency should not be seen merely as a compliance obligation. More than that, transparency is a long-term investment to build trust, strengthen corporate governance, and create an Indonesian capital market that is more integrated, competitive, and sustainable," said KAKI Chairman Erry Riyana Hardjapamekas.

KAKI and IICD hope that this forum can encourage more companies to increase the openness of ownership information and strengthen commitment to transparent and responsible business practices. The continued collaboration between regulators, the business world, and all stakeholders is believed to be the key to building a credible capital market ecosystem trusted by domestic and global investors.

In addition, KAKI and IICD invite companies to participate in various collective initiatives, learning programs, and forums to share best practices to accelerate the improvement of standards of corporate governance and integrity in Indonesia.

The organization also encourages companies to make transparency of ownership and good governance an integral part of business strategy, not just a fulfillment of regulatory obligations, and the Board of Commissioners and Board of Directors are expected to take a more active role in overseeing the implementation of transparency of ownership, risk management, and strengthening the culture of integrity throughout the organization.