STOCKS | Indonesia to Allow Central Bank, Danantara to Hold Exchange Stakes

Indonesia's Financial Services Authority will allow the Finance Ministry, Bank Indonesia, and sovereign wealth fund Danantara to hold shares in the Indonesia Stock Exchange after its demutualization reform is completed. According to Sina Finance, capital markets supervision head Hasan Fawzi said on Monday that exchange members, strategic investors, and the public will all be able to hold shares after the reform, which can be carried out through a new share issuance and/or the sale of treasury shares. Direct or indirect holdings may reach up to 5% without prior regulatory approval, while stakes above 5% require approval from the authority. Any shareholder, whether through direct, indirect, or affiliated-party holdings, may not exceed 50% of the exchange's equity. The rule took effect on September 17.