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JAKARTA, March 12 (Reuters) - Indonesia's parliament voted on Thursday to endorse the selection of five top officials at the country's financial regulator, as it rushes to implement key reforms and assuage global investor concerns about market governance in Southeast Asia's largest economy.
The positions fell vacant after a string of resignations in the aftermath of a January market rout that wiped off $120 billion in stock valuations.
The selloff was triggered by index provider MSCI warning that it could downgrade Indonesia to "frontier" status because of transparency and governance issues among listed firms.
"We hope that these names can build trust in the (financial regulator) OJK, in the capital market, and in the Indonesian financial services industry, making them more credible and trusted by the public," Mukhamad Misbakhun, head of parliamentary committee overseeing finance, said just before the Thursday vote.
The selections, recommended by a parliamentary panel on Wednesday, included Friderica Widyasari Dewi as the regulator's chair and Hasan Fawzi as its chief capital market supervisor, both for five-year terms. They were unanimous selections.
"We will restore market trust," Friderica told journalists at parliament after the vote.
Both were serving in interim capacities before their formal appointment, and have already been spearheading the reform efforts, which need to be completed before May when MSCI makes its decision on how Indonesian stocks will be categorised.
A downgrade could trigger a massive capital flight that could see outflows as high as $7.8 billion, Goldman Sachs has warned, though it deemed the scenario unlikely.
Indonesia, a $1.4 trillion, G20 economy, has suffered a series of market sentiment setbacks in 2026. Aside from the MSCI warning, two ratings agencies, Fitch and Moody's, have also downgraded Indonesia's outlook from stable to negative.
Fawzi admitted that global uncertainties would also affect Indonesian capital markets, but vowed to continue to accelerate reform plans.
(Reporting by Stefanno Sulaiman; Writing by Gibran Peshimam; Editing by David Stanway)
((Gibran.Peshimam@thomsonreuters.com; +62 819 52666722;))