Indonesia plans to double the minimum capital requirements for securities firms and certain investment managers.
This policy was drafted by the Financial Services Authority as part of capital market reforms aimed at reducing the risk of stock manipulation and boosting investor confidence.
The move comes after MSCI highlighted the risks associated with the ease of investing in the Indonesian stock market last January.
The government aims to strengthen transparency and governance in the capital market to make it more attractive to global investors.
Under the new regulations, securities firms will be categorized based on their capital strength and the types of services they are permitted to offer.
The minimum capital requirement for the lowest category increases from Rp500 million to Rp1 billion.
Meanwhile, the highest category is required to have a minimum capital of Rp110 billion.
For investment managers, full-service firms are required to have capital of Rp50 billion and a minimum of Rp1 trillion in assets under management.
Top-tier firms must also have specialized units such as internal audit and additional oversight functions.
Additionally, the OJK will tighten requirements for the establishment of compliance units at certain securities firms to prevent market manipulation.
OJK data shows that nearly 25 percent of market manipulation violations between 2022 and 2025 involved securities firms or their executives.
These regulations are expected to take effect soon, although the official implementation date has not yet been announced.