IDX to Require Minimum 15% Free Float

January 29, 2026 | 03:25 pm

TEMPO.CO, Jakarta - The Head of the Financial Services Authority (OJK) Board of Commissioners, Mahendra Siregar, said that the Indonesia Stock Exchange (IDX) will issue a regulation for a minimum 15 percent free float. Under the current regulation, the minimum free float or publicly traded shares is 7.5 percent.

This adjustment follows Morgan Stanley Capital International's (MSCI) announcement to temporarily freeze the rebalancing of the Indonesian stock index. "The Self-Regulatory Organization (SRO) will issue a regulation for a minimum 15 percent free float in the near future and with good transparency," said Mahendra.

Mahendra stated that issuers or public companies that cannot meet these requirements within a certain period will be subject to an exit policy under proper supervision.

In addition, according to Mahendra, IDX and the Indonesian Central Securities Depository (KSEI) have published the share ownership structure requested by MSCI. This structure excludes corporate and other investor categories from the free float calculation. This is done by publishing ownership above and below 5 percent for each share ownership.

Furthermore, to meet additional information requested by MSCI, IDX, and KSEI will also provide share ownership data of less than 5 percent along with investor categories and ownership structures. "So, this is an additional request. We will do it and ensure that we all comply with international best practices," said Mahendra.

In an official statement, MSCI said the temporary suspension of the Indonesian stock index was due to investor concerns about share ownership transparency. "While there have been minor enhancements to PT Bursa Efek Indonesia's (IDX) float data feed, investors highlighted that fundamental investability issues persist due to ongoing opacity in shareholding structures and concerns about possible coordinated trading behaviour that undermines proper price formation," MSCI said in its announcement, quoted on Wednesday, January 28, 2026.

With the freeze, MSCI will freeze all increases in Foreign Inclusion Factors (FIF) and Number of Shares (NOS); MSCI will not apply index additions to MSCI Investable Market Indexes (IMI); and MSCI will not apply upward migration between segments, including from Small Cap to Standard Index.

The Indonesian Composite Index (IHSG) opened today at 8,027.8 and dropped to 7,654.6. At the close of the previous day's trading, the index was at 8,320.5. This is the second trading halt in a row, following the temporary halt on Wednesday, January 28, 2026, when the IHSG dropped 8 percent to 8,261.78.

Read: IHSG Plunges 8%, Forcing IDX to Halt Trading Again

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