Indonesia Shares Rebound on Governance Drive, CEO Resignation

2026-01-30 13:02:59

Indonesian stocks rose 97 points, or 1.2%, to 8,329 on Friday afternoon, reversing steep losses in the prior two sessions sparked by concerns over ownership concentration and trading transparency following scrutiny from MSCI. Sentiment improved as the chief economic minister vowed to boost market transparency and corporate governance, with proposals to raise the minimum free-float requirement to 15% from 7.5%, expand pension and insurance fund exposure to 20% from 8%, and tighten checks on shareholder affiliations, including stakes below 5%. The relief rally was further supported by the bourse’s CEO resignation, citing responsibility for eroded investor confidence. Most sectors advanced, led by Bumi Resources (6.4%), Bukit Uluwatu Villa (6.1%), and Bank Central Asia (3.5%). Despite the rebound, the market remains on track for a second straight weekly decline and its first monthly loss in seven months, rattled by lingering geopolitical risks and uncertainty over U.S. policy direction.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.