The Indonesian Stock Exchange (IDX) no longer requires companies to have independent commissioners and directors in order to list on the bourse.

Revised I-A Regulation No. 00183/BEI/12-2018 on shares and other effects issued on Dec. 26 has scrapped the requirements in an effort to attract more companies to list in the bourse.

Former IDX president director Tito Sulistio said the policy was a positive move, but reminded the IDX management about the importance of an instrument to protect investors’ interests.

“We have to avoid the perception that the IDX ignores investors’ interests,” he said on Thursday as quoted by kontan.co.id.

He added that many countries still required independent directors for stock issuers in order to convince investors, including foreign investors, that their funds were well-protected.

“We admit that we are also still struggling to invite foreign investors to enter our market,” Tito said, adding that the asset under management (AUM) in Indonesia’s mutual funds reached only Rp 700 trillion (US$48.14 billion), compared to Singapore’s AUM, which stood at Rp 30 quadrillion.

According to the Organization for Economic Co-operation and Development (OECD) Survey of Corporate Governance Framework, China, Hong Kong and Singapore, as well as other ASEAN countries still require the inclusion of independent directors for stock issuers.

“Hopefully, the elimination of independent directors will not give the perception of less protection for investors,” Tito added. (bbn)