Finalizing The RPP Demutualization, IDX Says It's Conducting Studies

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesia Stock Exchange (IDX) has opened its voice regarding the government's plan to carry out IDX demutualization through the preparation of the Draft Government Regulation (RPP).

Director of Corporate Assessment of the Indonesia Stock Exchange (IDX) I Gede Nyoman Yetna explained that the preparation of the RPP regarding demutualization was still at the stage of compiling the study in supporting the RPP.

He added that the study covered various aspects that must be considered when the demutualization policy was implemented.

"We are currently discussing and comparing several models of demutualization implemented on several global exchanges that are optimal for the Indonesian capital market," Nyoman said in his statement, Monday, November 24.

For information, a number of exchanges in the world have already carried out demutualization, namely the first exchange to take this step is the Stockholm Stock Exchange in Sweden in 1993. Since then, various other exchanges such as Amsterdam Exchange, London Exchange, Hong Kong Exchange, to Nasdaq have also carried out similar transformations.

Previously, the Director General of Stability and Development of the Ministry of Finance (Kemenkeu) Masyita Crystallin explained that a separation between membership and ownership was needed to reduce potential conflicts of interest while increasing professionalism in stock exchange management.

"This is a strategic step to reduce the potential for conflict of interest, strengthen governance, improve professionalism, and encourage global competitiveness of the Indonesian capital market," he said in his statement, quoted Monday, November 24.

He added that the IDX is still one of the few major exchanges in the world that maintains the mutual structure. Meanwhile, a number of countries such as Singapore, Malaysia, and India have already carried out the transformation, so that their exchanges can develop faster and more swiftly following global market changes.

Therefore, Masyita added that the demutualization structure is expected to encourage product and service innovation, starting from the development of derivative instruments, Exchange-Trad Fund (ETF), to infrastructure financing instruments and energy transitions, so that in the end it increases market depth and liquidity.

He emphasized that the demutualization policy must be followed by other supporting reforms, namely one of the focuses of increasing free float to strengthen market liquidity.

"So that the impact on the depth and liquidity of the capital market is truly optimal," he said.

In terms of demand, increasing the involvement of domestic and institutional investors is also a priority.

The government is preparing policies to strengthen the role of pension fund institutions as investor anchors, including through improving cut loss rules so that they have certainty of investing in the capital market.

"This cut loss policy will later be directed to provide certainty for retirement fund managers in investing in the capital market, so that they can play a more active role and act as investor anchors that encourage capital market deepening," he explained.

The Ministry of Finance also conducted a comparative study with India, whose market capitalization increased from USD 1.56 trillion (72.86 percent of GDP) in 2014 to USD 5.17 trillion (133.5 percent of GDP) in 2024.

He added that the growth was triggered by improved governance, increased involvement of domestic investors, and the use of technology.

Lebih lanjut, Masyita menyampaikan, penyusunan RPP demutualisasi dilakukan melalui kajian teknis yang komprehensif dan konsultasi dengan regulator, BEI selaku SRO, para pelaku industri, serta lembaga legislatif.

“Kami memastikan proses penyusunan RPP dilakukan secara cermat, transparan, dan partisipatif. Tujuannya strategis, yaitu memperkuat pasar modal sebagai sumber pembiayaan jangka panjang yang mampu mendorong transformasi ekonomi Indonesia menuju negara maju,” tutup Masyita.

Furthermore, Masyita conveyed, the preparation of the RPP demutualization was carried out through a comprehensive technical study and consultation with regulators, the IDX as SRO, industry players, and legislative institutions.

"We ensure that the RPP preparation process is carried out in a careful, transparent, and participatory manner. The goal is strategic, namely to strengthen the capital market as a long-term source of financing that is able to encourage Indonesia's economic transformation towards developed countries," concluded Masyita.