Indonesia lawmakers grill candidates for top regulator jobs after market turmoil

Published Wed, Mar 11, 2026 · 02:06 PM

[JAKARTA] Indonesia’s parliamentary financial commission will on Wednesday (Mar 11) assess candidates for top jobs at the Financial Services Authority after an equity market rout in January triggered a spate of resignations.

The agency’s chair and deputy chair, as well as the chief and deputy chief supervisors of capital markets, all quit suddenly on Jan 30, days after index provider MSCI warned it could downgrade Indonesia to “frontier” status due to transparency and governance issues among listed firms.

The MSCI warning triggered sell-offs that within days had wiped about US$120 billion off Indonesia’s equity market, exacerbated by rating agency Moody’s downgrading the country’s sovereign credit rating outlook.

Parliament is considering 10 candidates for a total of five vacancies at the agency, known by its Indonesian abbreviation OJK. They include the current interim chair Friderica Widyasari Dewi and interim capital market supervisor Hasan Fawzi.

New team to implement vital reforms

The new leadership will oversee capital market governance reforms proposed by OJK and the Indonesia Stock Exchange to address the concerns raised by MSCI, which include doubling the minimum free float of listed company shares to 15 per cent over the next three years.

Friderica, whose career includes stints at the Indonesia Stock Exchange and a local investment bank, pledged to oversee the implementation of the proposed reforms to maintain financial market stability and restore investor trust, underlining the importance of improving transparency relating to beneficial owners of listed companies.

“Regarding MSCI, they have acknowledged our proposals, but they cannot necessarily immediately accept them, they would have to see our consistency on implementation,” she said.

Another candidate, retired OJK official Agus Sugiarto, said that he would focus on improving credibility, tackling fraud and enhancing policies to support government programmes, including one that would make banks provide loans for President Prabowo Subianto’s affordable housing programme.

Most of the other candidates are officials with OJK, the central bank, the finance ministry and the state deposit insurer.

Selection process fast-tracked

The panel is due to announce its picks after 1100 GMT on Wednesday, and they will require certification by the wider parliament on Thursday.

This selection process for the OJK leadership is quicker than the usual months-long process. Finance Minister Purbaya Yudhi Sadewa said on Tuesday that the appointments were being fast-tracked because of concerns about financial market volatility due to the conflict in the Middle East.

“The war … speeds up the need for more definitive persons at the OJK,” Purbaya told reporters. REUTERS