The head of the Indonesia Stock Exchange (IDX) has spoken publicly about a plan for the state investment agency Danantara to acquire a stake in the bourse, according to a report by detikFinance.
The remarks, published on Wednesday, follow earlier reports that Danantara is preparing to become an investor in the IDX once the exchange completes its demutualization process. Demutualization would convert the exchange from a member-owned organization into a shareholder-owned company, opening the door for outside investors.
According to detikFinance, the exchange chief said there are already prospective investors interested in holding shares in the IDX. The report did not name those investors. Separately, CNN Indonesia reported that the Financial Services Authority (OJK) has said Danantara could potentially hold a stake in the exchange above the usual ownership limit.
The IDX is currently structured as a mutual organization, where its members—typically securities firms—own and control the exchange. A move to a corporate structure would allow entities like Danantara to buy into the bourse directly. The reports suggest the government is positioning the state investment vehicle to play a role in the exchange's future ownership.
The reports also noted that four securities firms have recently changed their names, and that HSBC's shares have been transferred to the exchange, according to kumparan.com. The connection between those changes and the Danantara plan was not detailed in the reports.
What to watch next: whether regulators approve Danantara's stake and how the demutualization timeline unfolds.
