Indonesian Minister of Economic Affairs: Measures will be taken to improve stock market transparency

Glonghui, January 30th — Indonesia's Chief Economic Minister Airlangga Hartarto reiterated on Friday that Indonesia is committed to implementing necessary reforms in the operation of its stock market. Previously, concerns from international institutions regarding the transparency of Indonesia's stock market triggered an $80 billion stock market crash. Airlangga stated: "In the face of this situation, the government emphasizes its commitment to maintaining national stability and credibility — which is also to uphold the credibility of the capital market — and for this, we will adopt a series of strategic measures." He said these measures include increasing focus on the demutualization plan for companies listed on the Indonesia Stock Exchange (a plan that was already being prepared before the market crash), as well as raising the free float ratio of stocks to 15% (an initiative announced by the country's financial regulatory authority a day earlier). He added that pension funds and insurance companies will be allowed to increase their investment ratio in the capital market to 20% of their available capital, up from the previous 8%.