OJK introduces extensive changes to capital market following turbulence and resignations

The Financial Services Authority (OJK) recently introduced comprehensive reforms in the capital market after a turbulent period that led to the resignation of key officials. Acting chairwoman Friderica Widyasari revealed the reform package on February 1, 2026, focusing on minimum free-float requirements, transparency in share ownership, trading governance, and law enforcement.

Friderica emphasized that these measures aim to enhance the integrity and competitiveness of Indonesia’s capital market, bringing it more in line with global standards and the expectations of international index providers. The reform agenda was developed in collaboration with self-regulatory organizations (SROs) to rebuild market credibility following recent uncertainties.

The OJK’s commitment to implementing bold and far-reaching reforms reflects a concerted effort to instill confidence in the Indonesian capital market. The reforms encompass critical aspects such as minimum free-float requirements, ensuring greater transparency in share ownership, enhancing trading governance, and strengthening law enforcement practices.

By collaborating with SROs, the OJK aims to revamp Indonesia’s capital market infrastructure, aligning it with international benchmarks and best practices to boost investor confidence and attract global investments. These reforms underline Indonesia’s dedication to fostering a transparent, competitive, and resilient capital market that can effectively respond to evolving global financial dynamics.

The recent market volatility and subsequent resignations of senior officials have underscored the need for robust reforms to uphold the integrity and stability of Indonesia’s financial sector. The OJK’s decisive actions signal a proactive approach to addressing market challenges, ensuring that regulatory frameworks remain robust and responsive to emerging risks.

The reform agenda’s emphasis on transparency, governance, and enforcement mechanisms underscores Indonesia’s commitment to fostering a sound and resilient capital market ecosystem. By introducing stringent measures and collaborating with industry stakeholders, the OJK aims to enhance market integrity, bolster investor confidence, and promote sustainable growth in the capital market.

The sweeping reforms introduced by the OJK signal a new chapter in Indonesia’s capital market development, reflecting a commitment to international standards and best practices. Through proactive measures and strategic partnerships with industry bodies, Indonesia aims to position its capital market as a competitive and attractive destination for domestic and international investors.

Overall, the OJK’s reform agenda represents a significant step towards strengthening Indonesia’s capital market infrastructure, enhancing regulatory oversight, and fostering sustainable growth in the financial sector. By aligning with global standards and best practices, Indonesia aims to build a resilient and transparent capital market that can navigate complex geopolitical and economic landscapes with confidence.