Indonesia and India are the only two countries that publicly disclose the identities of shareholders holding more than 1% of listed companies, Indonesia Stock Exchange (IDX) President Director Jeffrey Hendrik said Saturday. The statement was made during a seminar in Mandalika, Lombok, where Hendrik emphasized transparency reforms aimed at bolstering investor confidence in the Indonesian capital market. “We have made public the names of shareholders holding more than 1%. Only Indonesia and India do this worldwide,” Hendrik said.
The IDX has expanded its shareholder disclosure requirements in stages, beginning with publishing names and later adding investor classifications. The exchange has increased its investor classification system from nine categories to 39, providing a more detailed breakdown of share ownership. Hendrik also mentioned plans to disclose whether shareholders are affiliated with one another, aiming to improve transparency about complex ownership structures. “Going forward, we will also indicate whether these shareholders are affiliated or unaffiliated,” he said.
IDX Chief Highlights Transparency Reforms
The IDX’s reforms include identifying stocks with high shareholding concentration, offering investors additional data to assess companies. Concentrated ownership, where a small number of shareholders control a significant portion of shares, can influence stock availability for public trading. Hendrik stated these measures were designed to strengthen market disclosures and reinforce confidence among domestic and international investors.
Expanded Investor Classification System
The exchange’s investor classification system now includes 39 categories, up from nine, reflecting a more nuanced approach to ownership data. This change allows for greater clarity on how shares are held, particularly in cases where multiple shareholders may have hidden connections. The IDX’s efforts to disclose shareholder relationships are part of a broader strategy to enhance transparency, according to Hendrik.
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