Indonesia Sets Three Market Reform Priorities: Company Value, Faster Enforcement and Investor Education

Jakarta seeks faster action and stronger listed companies

Indonesia is seeking faster action on capital market violations, using overseas examples of decisions followed up within one to three weeks, as part of three reform priorities outlined in Jakarta on November 12, 2026. The other priorities are increasing the value of listed companies and improving education for shareholders and investors.

Deputy Coordinating Minister for Economic Affairs Dradjad Hari Wibowo presented the agenda after a consultation at his ministry on Thursday morning. Officials from the Financial Services Authority (OJK), the Indonesia Stock Exchange (IDX), market infrastructure institutions, industry associations and listed companies attended.

The government wants company directors to use capital more efficiently, regulators to act more quickly, and investors to better understand a market that increasingly holds household savings. Dradjad cited Japan and South Korea as examples for improving company value through changes in corporate governance.

The discussion also exposed a practical challenge: stronger corporate performance must advance alongside clearer ownership information, more shares available for trading and visible enforcement results. Research from Korea Investment & Sekuritas Indonesia (KISI) identified those market integrity issues as central concerns for international investors.

What increasing company value means

Dradjad placed improvements in listed company value at the centre of the first reform priority. His explanation focused on decisions made by company boards, particularly how effectively they use the money available to the business.

Capital efficiency means getting better results from the money invested in a company. A business that commits substantial funds to assets or projects needs those investments to produce earnings. Better decisions about where money goes can improve performance and make the company more attractive to shareholders.

Japan's approach, as described by Dradjad, asks directors to improve this use of capital through stronger governance. Governance is the system of decisions, responsibilities and checks through which a company is run. For investors, it affects how managers spend their money and explain the results.

Dradjad expects improved performance to support higher corporate value and attract investment to the domestic exchange. The proposal therefore connects market reform to the operations of the companies whose shares investors buy, alongside work on trading conditions and supervision.

KISI's research team described the Japanese and South Korean valuation programmes as focusing on return on equity, dividends and share buybacks. Return on equity measures profit against shareholders' capital. Dividends distribute earnings to shareholders, while buybacks involve a company purchasing its own shares.

Tax, import duties and green energy enter the discussion

The Coordinating Ministry for Economic Affairs asked market participants which policies affecting actual business activity could help listed companies become more valuable. Their proposals covered taxation, import duties, green energy and other parts of the economy.

Those subjects bring ministries outside financial regulation into the reform effort. Tax policy affects how much profit companies retain. Import duties can affect the cost of materials or equipment bought overseas. Energy policy can influence operating costs and investment decisions.

The government plans to examine the proposals in coordination meetings with the relevant ministries and agencies. It also intends to use the Satgas Debottlenecking, a task force addressing regulatory and bureaucratic obstacles, to identify and tackle barriers affecting businesses.

IDX President Director Jeffrey Hendrik pointed to an existing measure linking taxation and public share ownership. He said a 3% tax incentive was already available to companies with free float above 40%, and that many public companies were benefiting from it.

The broader package remains at the proposal and coordination stage. Officials gave no adoption date for new tax, import duty or green energy measures, no binding domestic deadline for enforcement follow up, and no schedule for the coordination meetings.

Enforcement should move in weeks

Dradjad urged OJK and the exchange to accelerate decisions and action when suspected irregularities or violations arise. He said the government and market participants had agreed to seek faster follow through on enforcement decisions.

The deputy minister explained the international comparison used in the discussion:

We hope, and we have agreed, that it will be sped up. We use benchmarks from other countries, where some take one week and some three weeks. We hope that when there are such decisions, they can be followed up quickly,

The one to three week comparison concerned follow up on decisions. Dradjad said the exchange had presented several decisions that could be acted on quickly. The practical objective is to shorten the distance between a supervisory decision and the action that follows it.

For investors, that timing matters because suspected misconduct creates uncertainty about trading conditions and how rules will be applied. Faster decisions, followed by clear action, would give market participants a more immediate understanding of the regulator's response.

Supervision needs more public communication

Dradjad rejected the view that Indonesia's capital market lacked supervision. He said surveillance was already operating and argued that communication about its results and decisions needed to become more intensive.

Market surveillance means monitoring trading and related activity for signs of irregular behaviour. Enforcement is the action taken when authorities identify a breach. The government's agenda addresses both the speed of that action and how it is explained to the public.

Dradjad described progress in transparency, liquidity and surveillance, and referred to a recent announcement concerning high shareholding concentration (HSC). HSC refers to situations in which ownership is concentrated among a relatively small group of holders.

OJK's Securities Institutions Supervision Department head, Edi Broto, said the authority was pursuing reform seriously and continuously with the exchange and other market organisations. He connected that work to handling current market conditions and building a market recognised for its quality by domestic and international participants.

Public communication is therefore a distinct part of the enforcement agenda. Investors need understandable information about the decisions authorities make, the processes behind them and the action taken afterward.

Investor education becomes an asset protection priority

Dradjad said about 15% of Indonesia's population of working age had entered financial markets. Participation was also put at more than 34 million Indonesians investing in the capital market. The two figures describe participation using different measures: a share of a population group and a total number of people.

The government wants education to reach the public, shareholders and existing investors. Dradjad said understanding of capital markets still needed improvement even as participation increased.

His explanation focused on the role investments now play in household finances. Companies use capital markets to raise money, while individuals use them to hold and grow assets. A movement in share prices therefore changes the value of money that people have already invested.

Dradjad, describing the state's responsibility toward those investors, said:

So, the state will do its utmost to keep the value of their assets on the exchange protected,

Education fits alongside supervision because investors also need to understand what they own and how its value changes. A share represents a stake in a business, and its market price can rise or fall as investors reassess the company and trading conditions.

IDX President Commissioner Nurhaida also called for wider public education, stronger company fundamentals and better disclosure. Her comments connected the information companies publish with the decisions investors make about where to put their money.

More investors need more shares and products

Jeffrey said improving company value should proceed alongside a deeper market. His proposals addressed both demand, meaning the investors willing to buy, and supply, meaning the shares and other instruments available to them.

On demand, he called for greater participation by foreign investors and domestic institutional investors alongside Indonesia's substantial retail investor base. Institutional investors are organisations that invest pools of money, rather than individuals trading their own savings.

On supply, Jeffrey called for quality investment instruments, higher free float and new products. Free float is the portion of a company's shares available for public trading, rather than held in controlling or other restricted holdings.

A company can have many shares in existence while only a small portion is readily available to buyers and sellers. Raising the tradable portion gives investors access to more shares and supports the exchange's effort to improve liquidity, or the ease of buying and selling.

The meeting brought together organisations responsible for different parts of that market. Alongside OJK and IDX were the Indonesia Clearing and Guarantee Corporation (KPEI), the Indonesian Central Securities Depository (KSEI), the Indonesian Securities Companies Association (APEI), the Indonesian Listed Companies Association (AEI), and company representatives.

Nurhaida said stronger demand and supply should help the capital market contribute more to economic growth. Her priorities included stronger business fundamentals and more open company information, tying market expansion to the quality of what investors can buy.

Investors want evidence of ownership and enforcement changes

KISI's research team offered a more demanding test of progress. It said international index provider MSCI's concerns centred on ownership transparency, free float and enforcement, while the Japanese and South Korean programmes focused on improving company valuations.

Jeffrey said Indonesia's reforms were intended to improve the quality of the market broadly, beyond responding to the concerns of one or two global index providers. Index providers compile benchmarks used by investment funds to organise or assess their portfolios.

KISI identified several changes already made: HSC shares had been removed from the Jakarta Composite Index, minimum free float requirements had been raised, ownership information above 1% had been opened to the public, and an independent HSC committee had been formed.

The research team said evidence of sanctions naming the responsible parties and actual increases in free float was still lacking. Its assessment puts concrete outcomes at the centre of the next stage: identifiable enforcement action and a measurable increase in shares available for trading.

Foreign investors are invited to raise obstacles directly

Dradjad invited foreign investors to bring investment concerns and obstacles to the coordinating ministry, OJK and IDX. He described reform as part of strengthening institutions that have become essential to Indonesia's economy.

The deputy minister made the invitation directly in English:

If you have any concerns, please feel free to contact us in the Kemenko Perekonomian, OJK, BEI, and we will do our utmost to address all your concerns. We look forward to working with you for the mutual benefits of your institutions and also for our country,

The next work is divided among several institutions. The coordinating ministry will take business policy proposals to other ministries and agencies. OJK and the exchange face calls for faster enforcement and clearer communication. Listed company boards are being asked to improve how they manage capital.

Those responsibilities connect the three priorities. Stronger businesses give investors better assets to consider; more tradable shares and broader participation support a deeper market; enforcement and education help people navigate it with better information.

Key Points

• Indonesia outlined three capital market priorities on November 12, 2026: higher company value, faster enforcement and better investor education.
• Dradjad cited overseas examples of enforcement decisions followed up within one to three weeks.
• Business policy proposals cover taxation, import duties, green energy and regulatory obstacles.
• IDX wants more institutional participation, quality instruments, higher free float and new investment products.
• KISI said investors need evidence of named sanctions and actual increases in shares available for trading.
• The government will take policy proposals into coordination meetings with relevant ministries and agencies.