Jakarta (VNA) – Indonesia has completed stock market reform as part of efforts to win back investors’ confidence after transparency concerns triggered a mass sell-off earlier this year.
This move comes after global index compiler MSCI warned it might downgrade the Indonesian market amid investor concerns about a lack of transparency in shareholding structure and signs of coordinated trading activities.
Under pressure from international markets, Indonesian authorities have implemented a series of measures to enhance transparency. These include requiring disclosure from shareholders holding more than 1% of publicly listed company shares and increasing the minimum free float ratio to 15%.
Financial Services Authority capital market supervisor Hasan Fawzi said that all reform proposals submitted by Indonesia to global index providers have been completed on schedule. He added that Jakarta will continue dialogue with global index providers and gather feedback from investors in the coming period.
President Prabowo Subianto's government aims to raise economic growth from 5.1% last year to 8% by 2029, driven by public spending and structural reforms./.