Indonesia triggers major reforms to shore up investor confidence

March 12, 2026

Indonesia capital market reforms are being considered after the January 2026 MSCI crisis exposed weaknesses in ownership transparency and investor disclosure, triggering a catastrophic 7.35% IHSG collapse. This revealed a systemic disconnect, while UBO disclosure regulations existed through Presidential Regulation 13/2018, Indonesian accounting standards (PSAK) inadequately reflected these requirements, enabling complex ownership structures that frustrated international investors. The government is looking at major reforms to restore investor confidence.

Transparency reforms and implications for the accounting profession

For Indonesia’s accounting profession, this crisis presents unprecedented opportunities in corporate restructuring advisory, UBO mapping services, and specialised training on ownership-transparency analytics. However, firms face formidable challenges: developing new verification methodologies for complex conglomerate structures, accepting expanded professional liability, and working within compressed timelines to prevent Indonesia’s catastrophic downgrade to Frontier Market status by May 2026. Success requires transforming PSAK from standards permitting opacity to those demanding transparency, positioning Indonesia as a regional leader in beneficial ownership disclosure.

Regulatory shift in oversight of crypto assets

The crypto asset industry’s oversight in Indonesia also underwent a significant change in January 2025, affecting the operational legitimacy of local crypto exchange platforms. The Financial Services Authority (OJK) is now the current regulator of crypto assets following the formal transfer of authority from the Commodity Futures Trading Regulatory Agency (Bappebti). The transition represents a structural shift from a commodity-based regulatory approach toward integration within the financial service supervisory framework. Bank Indonesia continues to retain authority over payment system and monetary aspects.

Implications for audit and compliance

Kreston Indonesia expects that this transition will lead to the issuance of clear and uniform accounting guidelines. Currently, our firm serves several crypto audit clients with engagements led by our audit partners, Mr. Leknor Joni and Mr. Ronady Sembiring.

From an audit perspective, crypto assets constitute a significant risk. Our auditors are applying a risk-based approach, and we are closely monitoring further regulatory developments and updates issued by the OJK and Bank Indonesia to ensure compliance with the applicable provisions across our crypto audit engagements.