Bisnis.com, JAKARTA — The Financial Services Authority (OJK) is set to implement a phased increase in the free float portion of shares listed on the Indonesia Stock Exchange (BEI), ultimately aiming for 25%. In the immediate future, the current minimum free float requirement of 7.5% will be raised to 10%. This ambitious plan is slated to be a key focus for the OJK in 2026.
Currently, under Regulation Number I-A concerning the Listing of Shares and Equity-Type Securities Other Than Shares, listed companies are mandated to have a free float of at least 50 million shares and a minimum of 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 public trading, potentially reshaping their ownership structures.
The urgency for this policy is underscored by recent market data. As of October 2025, approximately 38 issuers remain suspended by the BEI for failing to meet the existing free float requirements. The OJK believes this tightened regulation will compel companies to re-evaluate and improve their share ownership structures, ensuring continued compliance and market integrity.
Martha Christina, Head of Investment Information at Mirae Asset Sekuritas, views this impending policy as a significant catalyst for attracting more global investors into the Indonesian stock market. She highlights that Indonesia still has numerous companies with a free float below 10%, a figure considerably higher compared to regional peers like Vietnam and Thailand.
Supporting this observation, data from Bloomberg reveals that out of 909 issuers on the BEI, 130 companies have a free float of less than 10%. In contrast, Vietnam records only 5.10% of its companies, and Thailand a mere 1.28%, with such low free float percentages. This disparity positions Indonesia with ample room for growth in market accessibility and liquidity.
“Overall, this will have a positive impact. It means more investors will indeed enter the capital market,” Martha stated during the Mirae Asset Sekuritas Morning Meeting on Monday, November 17, 2025. She further elaborated that an increased free float would significantly enhance the likelihood of Indonesian stocks being included in prestigious global indices, such as MSCI, which considers free float a primary indicator. “So, with this 10% target, we are essentially moving towards a Bursa where more of our issuers are noticed by the global market,” she added, emphasizing the strategic importance of the move.
However, Martha also acknowledged that the implementation of the new rules would not be without challenges for all companies. Issuers with low liquidity, in particular, are expected to face greater hurdles in attracting new investors. She even projected that some issuers might consider delisting from the exchange if the free float increase progresses consistently towards the 25% target. “But if the target reaches 25%, then issuers will also have to think… so it’s better to just delist, it’s easier,” Martha candidly remarked, highlighting the potential implications for certain companies.
From a different perspective, capital market observer Reydi Octa believes that the policy to increase free float could also effectively curb the manipulation of speculative stocks, often referred to as “fried stocks.” “An increase in free float can narrow the maneuverability of manipulated stocks because prices become more difficult to manipulate,” he explained, suggesting an added benefit of fostering greater market transparency and fairness.
Summary
The Financial Services Authority (OJK) plans to gradually increase the minimum free float requirement for stocks on the Indonesia Stock Exchange (BEI), starting with a raise from 7.5% to 10% in 2026, with an ultimate goal of 25%. This policy aims to compel companies to improve their share ownership structures, especially after 38 issuers were suspended for not meeting current free float rules. The move seeks to enhance market integrity and ensure compliance among listed companies.
Experts believe this increase will positively attract more global investors to the Indonesian market, as many local companies currently have free float below 10%, unlike regional peers. Higher free float could also boost Indonesian stocks’ inclusion in prestigious global indices like MSCI. While it may challenge low-liquidity issuers and potentially lead to delistings for some at the 25% target, the policy is also expected to curb the manipulation of speculative stocks.