OJK-BEI Finalizes Exchange Demutualization Regulation

The Financial Services Authority (“OJK”) and PT Bursa Efek Indonesia (“BEI”) are still awaiting developments in the drafting of the Draft Regulation of the Government (“Draft Regulation”) on Exchange Demutualization. This Demutualization policy is intended to separate the functions of stock exchange membership and ownership, as a follow-up to the implementation of Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector, as amended by Law No. 1 of 2026 on Criminal Adjustments (collectively referred to as “Law 4/2023”).

“From the stock exchange side, we are still waiting for progress on the Draft Regulation, and we (OJK) are also preparing the relevant tools,” said Kunwidarto, Director of Issuer and Public Company Assessment of OJK, to Hukumonline.

The demutualization options currently under consideration include a private placement scheme or Capital Increase Without Preemptive Rights (“PMTHMETD”), as well as an Initial Public Offering (“IPO”). This demutualization structure is expected to encourage product innovation, including the development of derivative instruments, Exchange-Traded Funds (“ETF”), and infrastructure and energy transition financing instruments. In addition, this policy is also projected to deepen and increase capital market liquidity.