Indonesian Parliament Pushes for Stricter SOE Listing Rules

Restructuring Seen as Key to Avoiding Delisting

The Indonesian Parliament has called for stricter enforcement of Indonesia Stock Exchange (IDX) regulations for State-Owned Enterprises (SOEs), with a particular focus on companies facing financial difficulties. The push for greater market discipline comes as several SOEs are at risk of being delisted due to poor financial performance.

Market Discipline Over Stock Price Support

Members of Parliament, particularly from Komisi VI, emphasize that the priority should be on ensuring transparent, professional, and accountable restructuring processes rather than merely supporting stock prices. Firnando Hadityo Ganinduto, a member of Komisi VI, stated that 'Delisting is not the end, but a market discipline mechanism. The important thing is to ensure restructuring is done seriously and on time.'

Implications for Financially Distressed SOEs

This development highlights the growing scrutiny on SOEs to improve their financial health and corporate governance. The IDX is expected to play a crucial role in enforcing listing rules, potentially leading to the delisting of underperforming SOEs. This move is seen as part of broader efforts to enhance market integrity and protect investors.