Indonesia has implemented a series of emergency market reforms and regulatory changes following an MSCI (Morgan Stanley Capital International) warning that sparked a sharp sell-off in the stock market. The Indonesia Stock Exchange intends to broaden the committee’s membership by including Indonesian academics and F Chapman Taylor, who represents foreign investors, IDX chief Jeffrey Hendrik announced at a press conference on Monday.
Earlier, the committee was made up of officials from capital market regulatory bodies. Taylor previously served as a partner at investment firm Capital Group and now advises Indonesia’s sovereign wealth fund, Danantara. Financial regulator and capital market supervisor Hasan Fawzi also urged the exchange to strengthen its market surveillance. He said the exchange could do this by improving its ability to identify unusual trading patterns, detect coordinated or illicit trading, and enhance its monitoring systems. He also emphasised the value of developing more effective procedures for investigating suspicious transactions, responding quickly to potential market irregularities, and strengthening oversight to support greater transparency, accountability, and integrity across Indonesia’s capital market.
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The Indonesia Stock Exchange (IDX) had also revealed plans to remove companies with highly concentrated share ownership from its flagship Jakarta index, with the new measures set to take effect on 2 November. The existing list comprises 80 companies. Separately, the regulator has prolonged the policy permitting companies to repurchase their own shares without obtaining approval at a general shareholders’ meeting until June 2027, provided they meet the minimum free-float requirements.
