Danantara prepares to acquire shares in Indonesia Stock Exchange
Indonesia's sovereign wealth fund, Danantara, is preparing to acquire shares in the Indonesia Stock Exchange (IDX) as part of the exchange's demutualization process. This transition, mandated by Law No. 4 of 2026 on the Development and Strengthening of the Financial Sector (P2SK Law), aims to transform the IDX from a member-owned mutual entity into a joint-stock company. Danantara's Chief Investment Officer, Pandu Sjahrir, stated that the acquisition would occur through its subsidiary, PT Danantara Investment Management, and emphasized that the process is progressing with coordination between Danantara, the Financial Services Authority (OJK), and the IDX Board of Directors. The OJK noted that state representatives, including Bank Indonesia, the Finance Ministry, and Danantara, will have priority in acquiring shares before private arrangements take place. The legal framework for this change is expected to be finalized by early September 2026.
Indonesia’s state-owned investment agency, Danantara, is set to acquire shares in the Indonesia Stock Exchange (IDX) as part of the exchange’s broader demutualization initiative. The move comes under the framework of Law No. 4 of 2026 on the Development and Strengthening of the Financial Sector (P2SK Law), which aims to transform the IDX from a member-owned cooperative into a joint-stock company. Danantara Chief Investment Officer Pandu Sjahrir confirmed the plans during a press briefing at the IDX headquarters in Jakarta on Monday. According to Sjahrir, the acquisition will proceed via Danantara’s subsidiary, PT Danantara Investment Management, following directives from senior management within the agency. While the exact percentage of the stake Danantara intends to purchase has yet to be disclosed, officials have indicated that final details are being worked out and will be made public soon. The transition is part of a larger effort to modernize the financial sector and align the IDX with international standards. The demutualization process involves shifting control of the IDX away from its current members, primarily brokerage firms, to external shareholders. This restructuring is intended to enhance transparency, efficiency, and competitiveness in the Indonesian capital markets. Under the P2SK Law, government-linked entities such as Bank Indonesia, the Ministry of Finance, and Danantara are prioritized in acquiring shares in the exchange. OJK Executive Head of Capital Market, Financial Derivatives, and Carbon Exchange Supervision, Hasan Fawzi, emphasized that these state representatives would be the first to gain access to equity in the IDX. He noted that after the initial allocation, private negotiations among other key stakeholders would take place. However, the exact sequence and terms of these transactions remain unclear at this stage. The OJK is currently working on an official regulation to formalize the demutualization process. According to Fawzi, the draft regulation is expected to be finalized by the second week of September 2026, providing the necessary legal basis for the structural changes. Once enacted, this regulation will outline the procedures for transferring ownership and managing the new corporate structure of the IDX. The shift in ownership raises questions about the future governance of the IDX. While Danantara has been granted the authority to invest in the exchange, it does not hold voting rights in certain decision-making bodies, including the KSSK (Capital Market Supervisory Agency). Earlier this year, Finance Minister Sri Mulyani Indrawati clarified that Danantara’s role in such organizations is limited to non-voting participation. This distinction suggests that while Danantara will play a strategic role in the IDX’s ownership structure, its influence over operational decisions may be constrained. The timing of the acquisition coincides with broader efforts to streamline the operations of state-owned enterprises (SOEs). In related developments, Danantara and BP BUMN, a state-owned holding company overseeing SOEs, have finalized a five-year roadmap aimed at transforming Indonesia’s public sector. This plan includes improving corporate governance, enhancing profitability, and increasing transparency across SOEs, including the IDX. As the demutualization process moves forward, the involvement of multiple regulatory and governmental bodies underscores the complexity of the transition. Coordination between Danantara, the OJK, and the IDX Board of Directors is critical to ensuring a smooth transfer of ownership. Officials have expressed confidence that the process will be completed within the next few months, though challenges such as legal formalities and stakeholder alignment could affect the timeline. The restructuring of the IDX marks a pivotal moment in Indonesia’s financial landscape. With increased state participation in the exchange’s ownership, there is potential for greater oversight and alignment with national economic priorities. However, the long-term impact of this change on market dynamics, investor confidence, and the overall performance of the IDX remains to be seen.
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