Indonesia appointed capital markets veteran Jeffrey Hendrik as chief executive of its stock exchange, signaling a fresh push to address severe market underperformance. The move represents the government's latest attempt to stem investor outflows and revive trading activity on an exchange that has lagged global peers for months.

Hendrik's appointment follows extended pressure on Indonesian equities, which have delivered the poorest returns among major emerging markets this year. Foreign investors have pulled money consistently, citing liquidity concerns and governance issues that have plagued the market structure.

The new CEO faces immediate challenges rebuilding trust with institutional investors who have grown skeptical of reform promises. His capital markets background suggests Jakarta wants proven expertise rather than political connections to navigate the recovery.

Whether Hendrik can execute meaningful reforms remains uncertain, but the leadership change acknowledges that Indonesia's equity market requires more than incremental fixes to compete regionally.