Can't find what you're looking for?
View all search resultsCan't find what you're looking for?
View all search resultsThe reprieve comes at a fragile moment for Southeast Asia's biggest economy as the still-looming threat of a downgrade from index provider MSCI has made Jakarta stocks, Asia's worst-performing major stock market this year, down 28 percent.
Indonesia has taken a significant step toward overhauling the governance of its capital market after lawmakers approved revisions to the Financial Sector Development and Strengthening (P2SK) Law, paving the way for the eventual demutualization of the Indonesia Stock Exchange (IDX). The reform seeks to end the longstanding model in which the exchange is owned by its member brokerages, while also allowing institutions such as Bank Indonesia (BI), the Finance Ministry and state asset fund Danantara to become shareholders. However, rather than eliminating governance concerns, the new framework may simply shift them from conflicts among market participants to more complex questions about the state's role in owning the country's capital market infrastructure.
The Indonesia Stock Exchange (IDX) Composite index is expected to rebound in the second half as easing MSCI concerns, fiscal stimulus and attractive valuations lift investor sentiment, but policy uncertainty and external risks could temper gains.
Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.
Thank you for sharing your thoughts. We appreciate your feedback.