Regulator emphasizes listing quality as Indonesia raises minimum public share ownership threshold
Indonesia’s capital market regulator is pressing ahead with a higher minimum free float requirement, signaling a strategic shift toward stronger market quality without dampening IPO momentum.
OJK Confident IPO Interest Will Hold
The Financial Services Authority (OJK) believes raising the minimum free float requirement from 7.5 percent to 15 percent will not reduce the number of companies planning to list on the Indonesia Stock Exchange. The policy is aimed at improving market quality rather than limiting access, according to Acting Head of Capital Market, Derivatives Finance, and Carbon Exchange Supervision Hasan Fawzi.
Shift Toward Quality Listings
Speaking at the PTIJK 2026 event in Jakarta on February 5, Hasan said OJK will now prioritize the quality of companies seeking approval for effective statements and eventual stock listings. He stressed that stronger governance and broader public ownership are becoming central considerations in Indonesia’s capital market development.
Companies Expected to Adjust Early
Hasan noted that prospective issuers are expected to understand and adapt to the new minimum free float requirement well before listing. Companies that initially planned to float less than 15 percent of shares are anticipated to revise their strategies accordingly, aligning with the updated threshold.BEI Rule Adjustment Set for March 2026
In parallel, the Indonesia Stock Exchange (BEI) is revising Regulation Number I A on the listing of shares and equity securities. The updated regulation is scheduled to take effect in March 2026, providing clarity and alignment with OJK’s policy direction on free float requirements.
IPO Pipeline Remains Unaffected
OJK confirmed that companies already in the IPO pipeline will continue to be processed under the existing BEI Regulation I A. These issuers will not be required to wait for the new rules to take effect, ensuring continuity and certainty for firms that have already begun the listing process.
Gradual Transition for Listed Firms
Addressing concerns about a wait and see approach from potential issuers, Hasan explained that existing listed companies will be subject to transitional arrangements. The phased approach allows sufficient time for compliance with the 15 percent free float requirement, reducing the risk of market disruption.
Free Float and Buyback Not in Conflict
OJK also clarified that the higher free float threshold does not contradict share buyback policies. Buybacks remain subject to existing approvals and regulations, while issuers must still ensure compliance with the minimum free float level. Companies with higher public ownership retain greater flexibility, while those closer to the minimum face tighter limits.
The higher free float requirement reflects Indonesia’s broader push to deepen liquidity, transparency, and investor confidence in its capital markets. As regulatory certainty improves, the policy is expected to strengthen market credibility for domestic investors while enhancing Indonesia’s appeal to regional and global participants, including those closely watching developments from Singapore.
Sources: Antara News (2026) , CNN (2026)
Keywords: Free Float Rule, IPO Indonesia, OJK Regulation, BEI Listing, Stock Market Policy
