FX.co ★ Indonesia Shares Rebound on Governance Drive, CEO Resignation

On Friday afternoon, Indonesian stocks experienced a significant recovery, rising by 97 points, or 1.2%, to reach 8,329. This rebound followed steep losses over the previous two sessions, triggered by concerns about ownership concentration and trading transparency after scrutiny from MSCI. Market sentiment improved after the chief economic minister pledged to enhance market transparency and corporate governance. Proposed measures include increasing the minimum free-float requirement from 7.5% to 15%, expanding pension and insurance fund exposure from 8% to 20%, and tightening checks on shareholder affiliations, including those with stakes below 5%. Confidence was further bolstered by the resignation of the bourse’s CEO, taking responsibility for the erosion of investor trust. Most sectors saw gains, with Bumi Resources rising 6.4%, Bukit Uluwatu Villa climbing 6.1%, and Bank Central Asia increasing by 3.5%. Nevertheless, despite this rebound, the market is poised to record its second consecutive weekly decline and its first monthly loss in seven months, amid ongoing geopolitical risks and uncertainty regarding U.S. policy direction.