OJK to Enhance Investor Transparency with Lowered Shareholding Disclosure Threshold
Jakarta – The Financial Services Authority (OJK) is set to increase transparency in the Indonesian capital market by lowering the threshold for disclosing share ownership in listed companies. This move, initiated by Acting Chair of the Board of Commissioners Friderica Widyasari Dewi, aims to address concerns raised by global index provider MSCI and improve investor confidence.
Lowering the Disclosure Limit
Currently, the Indonesia Central Securities Depository (KSEI) requires disclosure of share ownership only when holdings exceed 5%. The OJK will now require disclosure for investors holding more than 1% of shares in issuers listed on the Indonesia Stock Exchange (IDX). This change is a direct response to MSCI’s concerns regarding market transparency, which led to the firm freezing Indonesian shares in its classification.
“We will immediately open data on investors who hold more than 1% of shares in issuers,” stated Friderica Widyasari Dewi, emphasizing the regulator’s commitment to addressing the issue promptly.
Implementation Timeline
The IDX and KSEI are working to implement the more granular shareholder data disclosure gradually. KSEI President Director Samsul Hidayat indicated that the new disclosure rules will be in effect for the period beginning in March 2026. The data disclosure is expected to be available in early April, though it could potentially be expedited to mid-March if implementation proceeds smoothly.
Following India’s Example
The decision to lower the disclosure threshold was influenced by a similar approach taken by India when facing similar scrutiny from MSCI. The Acting President Director of the IDX noted that India successfully addressed MSCI’s concerns by increasing transparency in its market.
Leadership Transition and Continued Commitment
This initiative follows a recent leadership transition at the OJK, with Friderica Widyasari Dewi appointed as Acting Chair of the Board of Commissioners on January 31, 2026, following the resignation of Mahendra Siregar. Hasan Fawzi was also appointed as a Member of the Board of Commissioners. Despite these changes, the OJK remains committed to maintaining financial sector stability and strengthening consumer protection.
According to the OJK, the appointment of acting members of the Board of Commissioners was carried out in accordance with the mechanisms outlined in the OJK Board of Commissioners Regulation and is part of the agency’s institutional mechanism to maintain organizational stability.
Key Takeaways
- The OJK is lowering the shareholding disclosure threshold from 5% to 1%.
- This change is a direct response to concerns raised by MSCI regarding market transparency.
- Implementation is expected to begin in March 2026, with data potentially available as early as mid-March.
- The OJK is following a similar approach to that taken by India to address MSCI’s concerns.
- The move is part of a broader effort to maintain financial sector stability and protect investors.
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