Minister of Finance Purbaya Yudhi Sadewa has outlined three crucial criteria for prospective directors of the Indonesia Stock Exchange (IDX), as the current board’s term is set to conclude in 2026. This announcement signals an important leadership transition for Indonesia’s dynamic capital market.
According to Purbaya, the first prerequisite for new IDX director candidates is a profound understanding of market dynamics. Secondly, they must demonstrate a clear capability to expand the investor base, encompassing both retail and institutional participants. “They must be able to comprehend the market and effectively grow the foundation of retail and institutional investors here,” Purbaya emphasized during an interview at the IDX Building in Jakarta on Friday, January 2.
The third, and arguably most critical, criterion highlighted by Purbaya is an unwavering commitment from prospective IDX directors to combat irresponsible “penny stock” manipulators. “Crucially, they must possess a strong commitment to cleanse the market of unscrupulous stock manipulators,” he asserted, underscoring the government’s resolve against such practices.
This commitment is not new; Purbaya previously issued a stern ultimatum to Mahendra Siregar, Chairman of the Financial Services Authority (OJK). He demanded a six-month deadline to purge the capital market of penny stock practices, threatening to withhold crucial incentives for retail investors if the cleanup was not completed.
Purbaya emphatically stated that this measure is vital for cultivating a healthy and trustworthy investment ecosystem. He clarified that the government would not disburse incentives as long as the market remained plagued by manipulations that detrimentally affect novice investors.
“As I promised Mr. Mahendra, if these manipulative practices can be eradicated, retail investors will be safeguarded,” Purbaya reiterated at the Indonesia Stock Exchange Building in Jakarta on Wednesday, December 3, 2025. “I will provide additional incentives, tax breaks, and other benefits to encourage more people to enter the stock market. However, their entry must not be into a market that can deceive them.”
For clarity, “penny stocks” (saham gorengan) refer to shares of companies with weak fundamentals, where prices are artificially inflated or manipulated by specific parties or “brokers” for short-term gains. These stocks are typically characterized by extreme price surges without a clear underlying reason, low liquidity, and present exceedingly high risks. Their price movements often do not reflect the company’s true value, making them susceptible to drastic and sudden declines.
Summary
Minister of Finance Purbaya Yudhi Sadewa has outlined three essential criteria for prospective directors of the Indonesia Stock Exchange (IDX), whose current term concludes in 2026. Candidates must possess a deep understanding of market dynamics and demonstrate the ability to expand the investor base for both retail and institutional participants. Crucially, they must also show an unwavering commitment to combat irresponsible “penny stock” manipulators, which Purbaya considers the most critical requirement.
This commitment is vital for fostering a healthy and trustworthy investment ecosystem. Purbaya previously gave an ultimatum to the OJK Chairman to eradicate penny stock practices within six months, threatening to withhold incentives for retail investors if the market remains plagued by manipulation. He emphasized that additional incentives, such as tax breaks, would only be provided once the market is cleansed, ensuring novice investors are protected from deceptive practices.
