JAKARTA, April 2 - Indonesia has completed stock market reforms requested by index providers, a senior official announced Thursday.
The Financial Services Authority (OJK) will soon publish a list of stocks with high shareholder concentrations, according to Hasan Fawzi, chief capital market supervisor.
The reforms come after MSCI warned of a potential downgrade due to lack of transparency in stock ownership and trading. That warning triggered a $120 billion loss in market value on Jakarta’s stock exchange (IDX).
Key changes include requiring listed companies to disclose more shareholder data and raising the minimum "free float" of tradeable shares to 15 percent-doubling the previous level.
The Indonesia Stock Exchange has issued implementing rules, allowing firms up to three years to comply.
"We will continue firm actions against violations in the capital market, including stock movement manipulation, to restore trust," Hasan said.