Indonesia’s sovereign wealth fund Danantara is said to become a major shareholder of the Indonesia Stock Exchange (IDX), with a proposed 40.12% stake under the bourse’s planned demutualisation, per local media reports.
Danantara Investment Management (DIM), the investment arm of Danantara, is expected to acquire 69 shares in IDX through a rights issue, according to a presentation circulated to IDX shareholders on September 9, as cited in the reports.
The proposed transaction will make Danantara the second-largest shareholder of IDX, behind exchange members, which would hold 88 shares, or 51.16%, following the rights issue.
Non-exchange members will hold four shares, or 2.32%, while 11 shares, equivalent to 6.4%, will remain as treasury shares.
The proposed ownership structure comes as the Financial Services Authority (OJK) prepares rules for the demutualisation of IDX, including a general 5% ownership cap.
Under the draft regulation, any entity will be allowed to become an IDX shareholder provided its stake does not exceed 5% of the exchange’s issued shares.
The limit, however, will not apply outright to strategic shareholders. Parties that meet criteria set by OJK could be allowed to hold more than 5%, subject to regulatory review and approval. Potential strategic shareholders include Danantara, Bank Indonesia and the Finance Ministry.
The provision could allow Danantara to take a stake substantially above the proposed 5% ceiling. However, the final size of its holding remains subject to the demutualisation rules and the approval process.
OJK is targeting the issuance of the demutualisation regulation this month. Once the regulation takes effect, IDX will need to amend its articles of association and exchange rules to reflect the new ownership and governance structure.
The demutualisation will shift IDX from its current member-owned structure to a shareholder-owned company, allowing investors that are not exchange members to own shares in the bourse. Trading access, however, will remain limited to licensed exchange members.
Danantara has previously confirmed its interest in taking a stake in IDX through DIM. IDX CEO Jeffrey Hendrik said in August that DIM had formally conveyed its interest.
The proposed structure will also leave exchange members with a majority 51.16% stake after the rights issue.
IDX shares have a nominal value of 7.5 billion rupiah ($423,783) each, which is expected to remain unchanged after the rights issue. The exchange’s presentation puts the total number of shares at 172 after the proposed transaction.
The demutualisation is mandated under Indonesia’s Financial Sector Development and Strengthening Law, which allows Danantara, the Finance Ministry and Bank Indonesia to become shareholders in an exchange.
OJK has said strategic shareholders will need to demonstrate that a significant stake will benefit IDX, including through potential partnerships with regional and global exchanges and the development of Indonesia’s capital-market infrastructure.
