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Indonesia's UU PPSK Law Opens Opportunity for Public Investment in Indonesia Stock Exchange

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- The Law on the Development and Strengthening of the Financial Sector (UU PPSK) allows for the possibility of public investment in the Indonesia Stock Exchange (BEI) or demutualization. The Financial Services Authority (OJK) has confirmed this.

Deputy Commissioner for Capital Market Supervision I of the OJK, Djustini Septiana, stated that the possibility for the general public to become shareholders of the Stock Exchange can occur because it has been regulated in the UU PPSK.

"Because it is included in the PPSK, the general public may have the possibility to become shareholders," Septiana said when met at the Indonesia Stock Exchange in Jakarta on Thursday (29/12/2022). She added that the OJK will further regulate the demutualization.

The UU PPSK offers the option to strengthen the stock exchange through demutualization. The UU PPSK states that in addition to Securities Companies that have obtained a business license to conduct activities as Securities Dealers, other parties may become shareholders of the Stock Exchange.


UU PPSK Allows for Possibility of Demutualization of Indonesia Stock Exchange

Another article states that further provisions regarding other parties that may become shareholders of the Stock Exchange will be regulated in a Government Regulation after obtaining approval from the DPR.

Apri Sya'bani, Analyst for Financial Sector Policy at the Fiscal Policy Agency of the Ministry of Finance, stated in his opinion in the Indonesian Business Daily that the UU PPSK offers the option to strengthen the stock exchange through demutualization, in addition to brokers who have obtained an OJK license, other parties may become shareholders of the Stock Exchange.

"The restructuring of the structure, which aims to strengthen capitalization, will help the stock exchange build a more efficient and connected trading system, including strengthening interoperability services among markets and making the stock exchange play a more significant role in building a sustainable financial ecosystem," he wrote on Tuesday (27/12/2022).

He added that considering the stock exchange as a critical infrastructure, it is necessary to expand access to its ownership and become a national strategic policy.

If a change in the ownership structure of the stock exchange is carried out, he continued, it will be discussed by the government and the DPR's approval will be sought, to be subsequently regulated in a Government Regulation.

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