The Jakarta Composite Index (IHSG) experienced a significant downturn on Monday, October 12, dipping as much as -2.89% intraday before closing -2.59% lower at 5,936. This sharp correction unfolded amidst rumors of a forthcoming investigation by Indonesia’s Financial Services Authority (OJK) into alleged stock price manipulation within the renewable energy and coal mining sectors, potentially leading to substantial fines, even as the Indonesia Stock Exchange (IDX) simultaneously rolled out a robust package of new market transparency and listing regulations.

Market Jitters: OJK Probe Rattles Indonesian Stocks

The market’s initial dive was heavily attributed to an exclusive report by Kontan, detailing an impending OJK announcement regarding investigations into stock manipulation. This probe specifically targets shares in the rapidly expanding renewable energy and coal mining industries, with analysts suggesting potential penalties could run into hundreds of billions of rupiah. The broad market decline, disproportionately affecting conglomerate stocks, signaled widespread investor apprehension. The IHSG’s deeper cut compared to the IDX30’s more modest -1.41% drop underscored this sentiment, indicating a broad-based rather than concentrated sell-off in blue-chip names.

IDX Fortifies Market Integrity with Sweeping Regulatory Reforms

Coinciding with these market tremors, the IDX, in concert with the Indonesian Central Securities Depository (KSEI), launched a series of market strengthening initiatives late last week. These reforms build upon earlier efforts to enhance capital market transparency and integrity, acting as a proactive measure to safeguard investor interests and foster a healthier trading environment.

Enhanced Transparency: Unveiling Ownership and High Concentration Risks

A key pillar of the IDX’s new strategy involves a significant upgrade in data dissemination and market surveillance. The exchange aims to cast a wider net over potential market irregularities, particularly those stemming from concentrated shareholdings.

• The IDX and KSEI have announced an enrichment of stock ownership data, now categorizing 39 classifications and investor types, meticulously broken down into local and foreign ownership. This invaluable data will be distributed monthly via the IDX website, providing market participants with deeper insights into beneficial ownership structures.
• Furthermore, the scope of High Shareholding Concentration (HSC) reviews has been significantly expanded. The IDX will now utilize a price impact ratio for stocks with a market capitalization exceeding IDR 5 trillion, a substantial reduction from the previous IDR 10 trillion threshold. This broadened criterion aims to ensnare a larger cohort of stocks under scrutiny, proactively identifying and mitigating risks associated with concentrated ownership.

Raising the Bar: Stricter Listing and Retention Standards for Issuers

In a bold move to elevate market quality, the IDX has also tightened its listing requirements, effective October 9, 2026, through a refined Exchange Regulation No. I-A. These amendments represent a significant paradigm shift, promising a more robust and resilient marketplace. Key changes from the previous regulations include:

• Increased Minimum Shareholder Count at IPO: For Main Board listings, the minimum number of shareholders at IPO has soared from 1,000 to 10,000 Single Investor Identities (SIDs). Similarly, for the Development Board, the requirement jumps from 500 to 5,000 SIDs, ensuring a wider distribution of ownership from day one.
• Mandatory Underwriter Research Reports: Underwriters now bear a new obligation to furnish equity research reports at the time of application, and then again at the 6th and 12th month post-listing. This aims to provide continuous, independent analysis, enhancing investor confidence and due diligence.
• Profitability Deadline for Loss-Making Issuers: Companies seeking a listing that are currently unprofitable must now demonstrate a return to profitability by no later than the end of their second fiscal year post-listing. This tightens financial discipline and protects investors from speculative ventures.
• Stricter Main Board Retention Criteria: To maintain a Main Board listing, companies must now consistently report positive retained earnings and uphold a minimum of 1,000 SIDs. This is a significant upgrade from the previous requirements of merely 750 SIDs and no negative equity, ensuring sustained financial health and broader public ownership for premium-listed companies.
• Removal of Minimum IPO Price: In a move to enhance accessibility and market efficiency, the IDX has eliminated the minimum IPO price limit. This adjustment aims to increase investor participation and facilitate a more dynamic pricing mechanism.
• Expanded Free Float Definition: Shareholders holding more than 5% can now be classified as part of the “free float,” provided their beneficial owners are public investors meeting IDX’s specific criteria. This nuanced approach acknowledges institutional public holdings while maintaining free float integrity.

The Road Ahead: A Cleaner, Stronger Indonesian Capital Market?

These simultaneous developments paint a clear picture: Indonesia’s capital market is undergoing a profound transformation. The OJK probe serves as a stark reminder of the vigilant watch against market malfeasance, akin to a surgeon excising a cancerous growth to protect the entire organism. Complementing this, the IDX’s comprehensive regulatory overhaul acts as a fundamental strengthening of the market’s architectural pillars. These measures are designed to not only deter manipulative practices but also to foster a more transparent, equitable, and ultimately, more attractive investment landscape. Investors can anticipate a market where integrity is paramount and where the foundations are being meticulously reinforced, promising a more resilient and trustworthy environment for long-term growth. The stakes are high, but the commitment to a cleaner, stronger market is unequivocally clear.