The Indonesia Investment Authority (BPI Danantara) is planned to become one of the shareholders of the Indonesia Stock Exchange (IDX) following its demutualization. This step is similar to practices in other global or developed stock markets.

The Chief Investment Officer (CIO) of Danantara explained that the demutualization process will change the ownership structure of the IDX, which is currently controlled by securities companies (exchange members). In the future, the IDX has the potential to become a public company whose shares can be owned by the public and institutional investors.

According to him, this demutualization practice is not new and has been implemented by stock exchanges in several developed countries. Examples include global exchanges like HKEX (Hong Kong) and SGX (Singapore), which are highly competitive in the eyes of global investors.

“This is actually a very simple example because it already exists at the Hong Kong Stock Exchange, it also exists at the Singapore Stock Exchange, Bursa Malaysia has it, the India Stock Exchange has it, where the change here is that the IDX will change from a kind of mutual entity into a full for-profit company, and usually what happens is they will become a public company,” he said during the Capital Market Players Dialogue event.

One important point in the stock exchange transformation is Danantara’s involvement after the demutualization. According to him, this parent company of all state-owned enterprises will become one of the shareholders of the demutualized entity, and this condition is very common.

“Indeed, in most cases, the sovereign wealth fund enters there, and this is somewhat unique. So, in Singapore there is an example like Temasek entering, there are also Temasek-linked companies, there are also companies present there,” he explained.

Furthermore, even though Danantara will later own shares in the demutualized entity, the IDX is confirmed to operate normally and maintain its independence. This is because, according to him, all IDX operations will be based on regulations issued by the Financial Services Authority (OJK) as the supervisor of the domestic capital market.

“How to prevent conflicts of interest? First, only as a shareholder. The regulations are made by the regulator. For example, in Hong Kong there is something like the SFC, in Singapore there is also the financial services authority. Here it’s called OJK. OJK is the one that makes the regulations, the shareholders focus on for-profit for that institution. So, it’s very simple in my opinion, and it’s already proven.”

Indonesia Stock Exchange (IDX)

The Indonesia Stock Exchange (IDX) is the primary securities market in Indonesia, formed in 2007 through the merger of the Jakarta Stock Exchange and the Surabaya Stock Exchange. Its history dates back to 1912 with the founding of the first Dutch colonial-era exchange in Batavia (now Jakarta), though the modern market was re-established in 1977. Today, the IDX is a key institution for capital formation and economic growth in Southeast Asia’s largest economy.

Hong Kong Stock Exchange

The Hong Kong Stock Exchange (HKEX) is one of the world’s largest and most prominent financial marketplaces. Its origins trace back to the founding of the Association of Stockbrokers in Hong Kong in 1891, with the modern exchange formed by the merger of four separate exchanges in 1986. It is a critical gateway for capital flows between international investors and mainland China, especially through programs like Stock Connect.

Singapore Stock Exchange

The Singapore Stock Exchange (SGX) was formed in 1999 through the merger of the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX). It is now a leading integrated securities and derivatives exchange in Asia, playing a crucial role in Singapore’s development as a global financial hub.

Bursa Malaysia

Bursa Malaysia is the national stock exchange of Malaysia, based in Kuala Lumpur. It was originally established in 1964 as the Kuala Lumpur Stock Exchange (KLSE) and was later rebranded in 2004. Today, it is one of the largest bourses in Southeast Asia, facilitating trading in equities, derivatives, and Islamic capital market products.

India Stock Exchange

The India Stock Exchange, now known as the Bombay Stock Exchange (BSE), is Asia’s first and the world’s tenth oldest stock exchange, established in 1875. It was founded by Premchand Roychand under a banyan tree in Mumbai as “The Native Share & Stock Brokers’ Association.” Today, it is one of India’s two premier financial marketplaces, playing a pivotal role in the country’s economic development.

Temasek

Temasek was the early Malay name for the coastal settlement that later became Singapore, meaning “Sea Town” in Old Javanese. It was a minor trading outpost in the 14th century before the more well-documented founding of modern Singapore by Sir Stamford Raffles in 1819. The name “Temasek” is preserved today in Singapore’s national symbols and institutions, such as the Temasek Holdings investment company.

Financial Services Authority (OJK)

The Financial Services Authority, known as OJK (Otoritas Jasa Keuangan), is Indonesia’s independent government agency established in 2011 to regulate and supervise the country’s entire financial services sector, including banking, capital markets, and non-bank financial institutions. It was created to replace the previous fragmented regulatory system, aiming to ensure a stable, sustainable, and trustworthy financial system for Indonesia’s economic growth.

SFC

“SFC” most commonly refers to **Showa Women’s University’s Showa Frontier Campus (SFC)**, located in Tokyo, Japan. It is a modern university campus known for its innovative, interdisciplinary programs and facilities, established to foster global education and research. The broader Showa Women’s University itself was founded in 1920 by educator Enkichi Hitomi, with the campus evolving to meet contemporary educational needs.

*Note: If “SFC” refers to a different specific place (e.g., a company, a different institution, or the Super Famicom video game console), please provide additional context for a more accurate summary.*