Indonesia's financial regulator will double capital requirements for securities firms and certain asset managers to mitigate stock market manipulation risks. This initiative is part of broader capital market reforms designed to bolster investor confidence following concerns over market transparency.
Officials stated that firms with stronger capital will have broader operational capabilities, while those with limited capital will face restricted activities, thereby improving risk management. The new rules will be implemented soon, though a specific date was not provided.
Under the proposed tiered system, securities firms will be categorized into three levels based on capital. The minimum paid-up capital for the lowest tier will increase to 1 billion rupiah ($58,326), up from the current 500 million rupiah. The highest tier will require at least 110 billion rupiah.
Asset managers will also see enhanced capital mandates. Full-range asset managers will need 50 billion rupiah in capital and a minimum of 1 trillion rupiah in assets under management. These top-tier firms will be permitted to manage all investment products, including offshore mutual funds, with stricter departmental requirements.
Additionally, a compliance unit will be mandated for certain securities firms to further prevent market manipulation. Data indicates that nearly a quarter of parties penalized for market manipulation offenses between 2022 and 2025 were securities firms or their leadership.