Indonesia targets market transparency with new equity reforms, including stricter shareholder disclosure rules and index adjustments, as investors remain cautious regarding the Rupiah.
The Jakarta Composite Index (JKSE) is undergoing significant structural reforms aimed at enhancing market transparency and addressing concerns regarding coordinated trading. By excluding tightly owned stocks and mandating the disclosure of 1%+ shareholder affiliations, the exchange seeks to improve index quality and restore investor confidence, though the effectiveness of these measures remains subject to MSCI's upcoming assessment.
The reforms aim to restore investor confidence by increasing market transparency and mitigating risks associated with coordinated trading.
Tightly owned stocks will be excluded from the Jakarta Composite Index to better reflect market liquidity and ownership structure.
Indonesia has announced significant equity-market reforms aimed at restoring investor confidence in the Jakarta Composite Index. The measures include the exclusion of tightly held stocks and mandatory disclosure of 1% shareholder affiliations to curb coordinated trading risks.
The reforms aim to restore investor confidence by increasing market transparency and addressing concerns regarding coordinated trading activities.