TEMPO.CO, Jakarta – The Indonesia Stock Exchange (IDX) has prepared assistance measures for 267 listed companies that have yet to meet the minimum free float requirement of 15 percent, ahead of a planned revision to stock listing rules set to take effect in March 2026.
Despite the upcoming implementation, IDX Director of Company Assessment I Gede Nyoman Yetna said issuers would not be required to immediately comply with the new threshold.
“Companies will be given two to three years to gradually increase their free float,” Nyoman told reporters at the Indonesia Stock Exchange on Monday, February 9, 2026.
“During this period, there will be monitoring and target-setting. For example, in the first year the free float may be required to reach 10 percent or 12.5 percent. That will be determined by us.”
Gradual Adjustment and Market Support
Nyoman said IDX will map listed companies based on their specific characteristics to determine appropriate corporate actions for increasing public ownership. The exchange will also work with issuer associations to organize knowledge-sharing sessions.
“These sessions are intended to help companies strengthen their business models and fundamentals so they become more attractive to investors,” he said. “The goal is to ensure that the increase in free float can be effectively absorbed by the market.”
IDX will also involve investment banks to provide strategic input to issuers. “And third, with support from the Financial Services Authority (OJK), we are looking at how to accelerate the process,” Nyoman added.
Proposed Changes to Listing Rules
The revised rules are still in draft form and remain open to public feedback. Under the proposed amendment to Regulation Number I-A on the Listing of Shares and Equity Securities Other Than Shares, IDX plans to raise the free float threshold and shift the basis of calculation from equity value to market capitalization.
Under the draft regulation:
Companies with a market capitalization below Rp5 trillion would be required to list at least 25 percent of their shares.
Companies with a market capitalization between Rp5 trillion and Rp50 trillion would be subject to a minimum free float of 20 percent.
Companies with a market capitalization above Rp50 trillion would be required to maintain a minimum free float of 15 percent.
MSCI Concerns and Regulatory Response
The proposed changes follow concerns raised by Morgan Stanley Capital International (MSCI) over transparency in Indonesia’s share ownership structure.
In a statement issued on Wednesday, January 28, 2026, MSCI said that while there had been modest improvements in free float data on the IDX, investors remained concerned about fundamental issues affecting investment capacity.
“Investors are highlighting that fundamental issues related to investment capabilities continue due to the lack of transparency in share ownership structures and concerns over the possibility of coordinated trading behavior that disrupts proper price formation,” MSCI said.
MSCI added that more detailed and reliable information on share ownership, including closer monitoring of high ownership concentrations, is needed to properly assess free float levels and investment eligibility across Indonesian stocks.
In response, MSCI temporarily froze adjustments to certain Indonesian shares. IDX and the OJK have since moved to revise listing regulations, including free float provisions, with the new framework targeted for implementation by March 2026.
Read: After MSCI, FTSE Russell Delays Indonesia Index Review
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