Bisnis.com, JAKARTA — The Financial Services Authority (OJK) is preparing a policy to progressively increase the proportion of free float shares on the Indonesia Stock Exchange (IDX), aiming to reach 25%. In the near future, the minimum free float requirement, currently set at 7.5%, will be raised to 10%. This initiative is slated to be one of OJK’s primary focuses for 2026.
Currently, under Regulation No. I-A concerning the Listing of Shares and Equity Securities Other Than Shares, listed companies are mandated to have a public float of at least 50 million shares and no less than 7.5% of their total outstanding shares. With the proposed increase in this minimum threshold, issuers are expected to expand the proportion of their shares available for trading by the public.
Data from October 2025 reveals that approximately 38 issuers remain suspended by the IDX due to non-compliance with the existing free float provisions. The escalation of this regulation is anticipated to compel companies to optimize their share ownership structures, ensuring they continue to meet listing eligibility criteria.
Martha Christina, Head of Investment Information at Mirae Asset Sekuritas, believes this policy holds significant potential for attracting a greater influx of global investors into the Indonesian stock market. She highlighted that Indonesia currently has a substantial number of companies with a free float below 10%, a figure considerably higher compared to regional counterparts such as Vietnam and Thailand.
According to Bloomberg data, out of 909 issuers on the IDX, 130 companies have a free float of less than 10%. In contrast, Vietnam only records 5.10% and Thailand a mere 1.28% of companies with such a low public float.
“Overall, this impact will be very positive. It signifies that more investors will be drawn to our capital markets,” Martha stated during the Mirae Asset Sekuritas Morning Meeting on Monday, November 17, 2025.
She further elaborated that an increase in free float will also enhance the prospects of Indonesian stocks being included in prestigious global indices like MSCI, which regards free float as a crucial indicator. “So, by aiming for 10%, we are essentially paving the way for our Exchange to have more of its issuers noticed by the global market,” she added.
Nonetheless, Martha cautioned that implementing the new rule will not be straightforward for all companies. Issuers with low liquidity are projected to encounter greater challenges in attracting new investors. She even suggested that some issuers might consider delisting from the exchange if the continuous increase in free float proves unsustainable for their operations.
“But if the target reaches 25%, issuers will inevitably have to consider their options… perhaps even concluding that delisting would be simpler,” Martha remarked.
Capital market observer Reydi Octa shared an additional perspective, noting that the enhanced free float policy could also restrict the maneuverability of “gorengan stocks” (a term referring to manipulated or pump-and-dump stocks). “The increase in free float can limit the manipulation of such stocks because their prices become much harder to control,” he explained.
Summary
The Financial Services Authority (OJK) is developing a policy to gradually increase the proportion of free float shares on the Indonesia Stock Exchange (IDX), with a target of reaching 25%. In the near future, the minimum free float requirement will be raised from 7.5% to 10%, becoming a primary focus for the OJK in 2026.
This policy is expected to attract more global investors to the Indonesian capital market and increase the potential for Indonesian stocks to be included in prestigious global indices such as MSCI. However, some companies with low liquidity may face challenges in adjusting and may even consider delisting. Increasing the free float also has the potential to limit the manipulation of “penny stock” share prices.
