Prabowo Backs Landmark Stock Exchange Demutualization to Build Global Megamarket

JAKARTA, Investortrust.id — President Prabowo Subianto threw his full political weight behind the planned demutualization of the Indonesia Stock Exchange (IDX) on Friday, outlining an ambitious agenda to transform Southeast Asia’s primary bourse into one of the largest and most credible capital markets in the world.

Speaking during his address at the 1st Plenary Session of the House of Representatives (DPR) for the 2026–2027 legislative term in Jakarta, the head of state emphasized that structural overhaul and stricter regulatory enforcement are essential to boosting institutional confidence across the archipelago's equity landscape.

Demutualizing the IDX marks a historic shift from a member-owned broker cooperative into a commercially driven, for-profit corporate entity. Global fund managers and institutional investors view this structural transition as a critical catalyst to improve liquidity, enhance market governance, and potentially pave the way for international strategic ownership and public listings down the road.

State Superholding Danantara Lines Up for Equity Stake

The planned demutualization is mandated by the landmark Financial Sector Development and Reinforcement Law (UU P2SK), which authorizes equity ownership in the exchange by state institutions, including the Ministry of Finance, central bank Bank Indonesia, and sovereign wealth agency BPI Daya Anagata Nusantara (Danantara).

IDX Chief Executive Officer Jeffrey Hendrik confirmed that Danantara has already submitted an official letter of interest to acquire a stake through its subsidiary, Danantara Investment Management (DIM).

"The entity that has expressed interest is BPI Danantara," Hendrik told reporters at the IDX Building in Jakarta on Wednesday. "The one that sent the letter to us is Danantara Investment Management."

Hendrik added that the definitive shareholding structure, including whether foreign investors will be permitted to participate, remains subject to upcoming implementing rules by the Financial Services Authority (OJK), the country's primary capital markets regulator.

Strict Enforcement Anchors Market Credibility

Prabowo highlighted ongoing market cleaning initiatives executed by regulators, pointing to stringent enforcement actions against market manipulation and non-compliant participants as a prerequisite for global integration.

"We will also continue our capital market reforms with market demutualization," Prabowo said during his parliamentary address on Friday. "Demutualization will bring Indonesia's capital market to world standards and establish it as one of the largest in the world."

The President reinforced that governance remains non-negotiable for the administration.

"Those who violate exchange rules are penalized," Prabowo stressed before lawmakers.

Equities Surge in Broad-Based Rally

Domestic stock markets rallied sharply on Friday following the policy pronouncements, with the benchmark Jakarta Composite Index (IHSG) surging 100.12 points or 1.59% to close at its intraday high of 6,401.

Trading turnover across the session reached Rp 10.82 trillion ($680.50 million), driven by gains across every single market sector. Real estate shares led the advance with a 2.99% surge, followed closely by energy equities leaping 2.66%, healthcare stocks advancing 2.09%, and infrastructure plays gaining 1.67%.