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Foreign investor response to lift Jakarta stocks, says Danantara CEO

Jakarta (ANTARA) – Danantara Indonesia CEO Rosan Roeslani said on Sunday he projects Indonesia’s benchmark Jakarta Composite Index to rebound in Monday’s trading, citing a positive response from foreign investors to ongoing capital market reforms.Roeslani said he had been in intensive talks with global investors over the past few days, with most expressing confidence in policies being pursued by the government together with the Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX).“If those reforms are implemented, they will become even more confident in our market. But based on the actions we have taken over the past few days, they have also responded very positively,” Roeslani said, speaking to reporters at the IDX building.“So, InshaAllah, I am confident that on Monday and in the days ahead our capital market will rebound and perform well,” he added.He said one of the main inputs from foreign investors was a request to lower the disclosure threshold for investor ownership data in the capital market from the current 5 percent, noting that several other markets apply lower thresholds of around 1 to 2 percent.“They want that, if currently investor data must be disclosed only when ownership exceeds 5 percent, they said it should be reduced, not limited to the 5 percent threshold, because in some countries such as India the threshold is 1 percent, while in others it is 2 or 1 percent. They want it to be lowered as well,” Roeslani said.The request is in line with an evaluation by Morgan Stanley Capital International (MSCI), which has urged the IDX to provide deeper disclosure of investor ownership data, particularly for shareholders holding less than 5 percent.Currently, disclosure requirements apply only to shareholders above that threshold, which is considered insufficiently transparent for accurately calculating the public free float.Foreign investors have also welcomed a policy to raise the minimum free float requirement for listed companies to 15 percent from 7.5 percent, Roeslani said.According to the Danantara chief, the combination of these structural measures sends a strong signal that authorities are serious about improving capital market governance, which is expected to help restore investor sentiment.