Indonesia will give some listed companies up to three years to raise their public float to at least 15%, as part of ongoing reforms to improve transparency and market liquidity.
The Indonesia Stock Exchange (IDX) said companies with a market value under 5 trillion rupiah (US$295 million/RM1.2 billion) must meet the minimum public float requirement by March 31, 2029. Firms valued above 5 trillion rupiah with a free float below 12.5% must first reach 12.5% by March 31, 2027, then 15% a year later. Companies with free floats already between 12.5% and 15% must hit 15% by March 31, 2027.
The new rules follow months of consultation as Indonesian authorities aim to avoid a potential MSCI market downgrade, which earlier raised concerns about investability and triggered a sharp market selloff.
“We see this as a constructive move,” said Felix Darmawan, analyst at PT BCA Sekuritas. “The timeline strikes a balance — giving companies time to adjust while enhancing liquidity and broader investor participation.”
The IDX has also increased the minimum float for IPOs to 15–25%, depending on company size, up from the previous 10–20% range.
