Flooring Guide by Cinvex – JAKARTA — The Indonesia Stock Exchange (IDX) has released its latest monitoring report on the crucial 15% minimum free float rule, a development that MNC Sekuritas anticipates will lead to a significant increase in stock supply. This regulatory update is poised to reshape the market landscape as numerous listed companies work towards compliance.
Herditya Wicaksana, Head of Research at MNC Sekuritas, revealed that hundreds of listed companies currently fall short of the mandated free float threshold. These companies will be granted a gradual transition period to meet the new requirements. Herditya emphasized the potential impact, stating, “Closing the free float gap, especially among large-cap stocks, is expected to substantially boost stock supply between 2027 and 2029.” This projection, made on Friday (May 8, 2026), highlights the long-term implications for market liquidity.
To achieve compliance, companies are exploring various strategic maneuvers. Herditya pointed out that structural corporate actions such as rights issues and secondary placements are primary options for meeting the new regulations. However, he noted a distinct preference among companies, adding, “The ‘go private‘ option is likely to be considered only as a last resort for issuers who wish to avoid dilution of existing shares.”
The IDX has established clear and stringent deadlines based on market capitalization. For listed companies with a market cap exceeding Rp5 trillion, the mandate requires them to reach a 12.5% free float by March 31, 2027, and subsequently achieve the full 15% by March 31, 2028. Meanwhile, issuers with a market cap below Rp5 trillion are given until March 31, 2029, to meet the 15% free float requirement.
A specific condition also applies to issuers whose current free float stands between 12.5% and 15%. These companies are required to achieve full free float compliance directly in 2027, underscoring the urgency for those already close to the target.
MNC Sekuritas has identified several prominent big-cap stocks that warrant close monitoring due to their current free float levels. These include BREN with a free float of 12.3%, TPIA at 10.6%, and PANI at 11%. Additionally, the list comprises DNET at 6.2%, BNLI at 10%, BRIS at 9.3%, and HMSP with a free float of 7.5%. These figures provide a snapshot of the companies most directly impacted by the impending regulatory changes.
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Summary
The Indonesia Stock Exchange (IDX) has introduced a new 15% minimum free float rule, which MNC Sekuritas anticipates will significantly increase stock supply in the market. Hundreds of listed companies currently do not meet this threshold and will have a transition period to comply. Companies are expected to primarily utilize rights issues and secondary placements to achieve compliance, with “go private” considered a last resort.
Deadlines for compliance are tiered: large-cap companies (over Rp5 trillion) must reach 15% free float by March 31, 2028, while smaller-cap companies (below Rp5 trillion) have until March 31, 2029. Companies with a free float between 12.5% and 15% must achieve full compliance by 2027. Several prominent stocks, including BREN, TPIA, and PANI, have been identified with current free float levels below the mandated target.