The Indonesian government and the House of Representatives (DPR) have approved revisions to the Financial Sector Development and Strengthening Law (UU P2SK), allowing the Indonesia Stock Exchange (BEI) to become a public company through a demutualization process (04/06).

The revision of Law No. 4 of 2023 on UU P2SK adds provisions related to exchange demutualization, changing BEI’s ownership structure from a member-based institution into a profit-oriented company.

Revised UU P2SK Changes BEI Ownership Structure

The government and DPR approved the revised UU P2SK during the 20th Plenary Meeting of the Fifth Session of the 2025–2026 Legislative Year at the Parliament Complex in Senayan, Jakarta, on Thursday (04/06).

Demutualization refers to a change in the ownership structure of an exchange from being owned only by exchange members to becoming open to other parties, including the government and state institutions.

Under the mutual structure, ownership is held by members who also use exchange services and receive economic benefits from the company.

The revised Article 8 paragraph (3) of UU P2SK states that the stock exchange will no longer have a mutual structure but will become a demutualized and profit-oriented institution.

The change is intended to allow BEI to respond faster to global financial market developments.

BEI Demutualization Creates New Investor Access

The revised regulation explains that the demutualized structure could allow BEI to attract large investors who have an important role in developing the stock exchange.

“The Stock Exchange can attract major investors who have an important role in advancing the Stock Exchange,” according to the explanation of Article 8 paragraph (3) of the revised UU P2SK.

The regulation also states that the demutualization structure provides an opportunity for BEI to become a public company through a public share offering according to applicable regulations.

Head of Capital Market, Derivatives Finance, and Carbon Exchange Supervision at the Financial Services Authority (OJK) Hasan Fawzi said demutualization would allow shareholders outside exchange members to enter and encourage business innovation at BEI.

“Imagine the demands of modernization, interconnectedness, or the relationship between regional and global exchanges becoming a very significant potential and opportunity when we introduce exchange demutualization in the future,” Hasan said on Friday (13/03).

Hasan said the ownership change would bring new ideas and strengthen BEI’s competitiveness amid increasing connections between regional and global exchanges.

Public Company Transformation Planned Through Two Stages

The demutualization policy also opens opportunities for state institutions to become BEI shareholders. The Daya Anagata Nusantara Investment Management Agency (Danantara) has stated its interest in investing after the demutualization process is completed.

“We are open, if demutualization has occurred, of course Danantara also wants to enter,” Danantara Chief Executive Officer Rosan Roeslani said on Friday (30/01).

DPR Commission XI Chairman Mukhamad Misbakhun explained that BEI’s demutualization process would take place in two stages.

The first stage would be carried out through private placement, where existing shareholders sell part of their ownership to new investors.

After the ownership structure changes, BEI is expected to implement governance practices similar to a public company for a certain period.

The process is expected to improve transparency in capital market management and provide an example of good governance practices for listed companies.

Misbakhun said BEI also needs to maintain an adequate public shareholding portion in line with the public float requirements applied to listed companies.

After the private placement stage, the demutualization process could continue through an initial public offering (IPO), allowing the wider public to become shareholders of the Indonesia Stock Exchange.

PHOTO: MNC MEDIA

This article was created with AI assistance.

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