Danantara to acquire stake in Indonesia Stock Exchange as demutualization advances
Indonesia's sovereign wealth fund Danantara is coordinating with regulators to acquire shares in the Indonesia Stock Exchange as part of a historic transformation from member-owned mutual to for-profit company under new financial sector legislation.
Danantara to acquire stake in Indonesia Stock Exchange as demutualization advances
Indonesia's sovereign wealth fund Danantara is moving forward with plans to acquire equity in the Indonesia Stock Exchange (IDX) as the market operator undergoes a fundamental restructuring mandated by comprehensive financial sector reforms enacted in June 2026.
Danantara Chief Investment Officer Pandu Sjahrir confirmed on Monday that the agency is coordinating with the Financial Services Authority (OJK) and the IDX Board of Directors to complete the ownership transition within the coming months. The venture capitalist and entrepreneur, who founded AC Ventures before being appointed to lead Danantara's investment strategy when the fund launched in February 2025, spoke to reporters at the IDX Building in Jakarta.
The equity acquisition will be executed through Danantara's subsidiary, PT Danantara Investment Management, following direct investment mandates from agency leadership. Specific details regarding the size of the shareholding remain under finalization and will be announced once arrangements are complete.
Legal framework for market transformation
The demutualization process is mandated under Law No. 4 of 2026 on the Development and Strengthening of the Financial Sector, enacted on June 17, 2026. This omnibus legislation consists of 27 chapters and 341 articles amending 17 financial-related rules, addressing multiple areas of financial sector regulation beyond stock exchange restructuring alone.
The law requires the IDX to transition from its current structure as a mutual association of exchange members operating on a not-for-profit basis to a limited liability, for-profit company accountable to shareholders. Under the existing mutual ownership model, the exchange is owned exclusively by its members, primarily securities companies. Following demutualization, the IDX will be permitted to generate profits and distribute dividends to shareholders.
OJK Executive Head of Capital Market, Financial Derivatives, and Carbon Exchange Supervision Hasan Fawzi stated that state representatives will receive priority in the share acquisition process. Bank Indonesia, the Finance Ministry, and Danantara will be the first parties given the opportunity to hold shares in the restructured exchange, with private arrangements among key entities to follow.
Regulatory safeguards under development
The OJK is currently drafting an official regulation on demutualization, with completion targeted for the second week of September 2026 to establish the legal foundation for the institutional overhaul. The regulator is planning to implement ownership caps to ensure no single shareholder can control the exchange, recognizing that it operates critical market infrastructure and must serve the interests of all market participants.
Danantara, established on February 24, 2025, as Indonesia's second sovereign wealth fund, was designed to manage and optimize state-owned enterprises. The agency was modeled after Singapore's Temasek and has authority to directly oversee state-owned enterprises, approve capital increases, and restructure companies through mergers, acquisitions, and spin-offs. Indonesia's first sovereign wealth fund, the Indonesia Investment Authority, was established in 2021 and currently manages US$10.5 billion in capital.
The IDX demutualization represents a significant step in Indonesia's broader financial sector modernization efforts, transforming how the country's primary securities market operates and introducing new opportunities for state participation in market infrastructure governance.