Overview
- The government moved to double the minimum free float for listed firms to 15% and lifted equity investment caps for pension and insurance funds to 20% to bolster liquidity and transparency.
- MSCI cautioned it may reclassify Indonesia and paused certain index additions until ownership concentration and access concerns are addressed.
- Financial Services Authority chairman Mahendra Siregar, his deputy Mirza Adityaswara, and Indonesia Stock Exchange CEO Iman Rachman tendered resignations during the turmoil.
- The Jakarta Composite Index sank more than 10% over two days, with 45.5 trillion rupiah in shares sold on Jan 28, then partially rebounded after reform pledges.
- Investor anxiety deepened after Danantara announced a forced transfer of the Martabe gold mine to a state entity, drawing warnings of likely litigation and raising legal-certainty concerns.