OJK and IDX Set 2026 Target for Enhanced Free Float Regulations

Gradual Implementation Planned

The Financial Services Authority (OJK) and Indonesia Stock Exchange (IDX) have announced plans to implement new regulations regarding minimum free float requirements for listed companies by 2026. The implementation will be carried out gradually to ensure a smooth transition for affected companies.

Comprehensive Study Nearing Completion

According to Iman Rachman, CEO of IDX, the exchange is currently finalizing a comprehensive study on the proposed regulations. Once the study is complete, IDX will initiate a rule-making process that includes consultations with market participants, such as securities companies, institutional investors, and potential issuers. This consultative approach aims to gather feedback and ensure that the new regulations are practical and effective.

Regulatory Alignment

The new free float regulations are expected to be implemented in conjunction with adjustments to IDX Regulation No. I-A. This alignment is intended to create a cohesive regulatory framework that supports market development while maintaining investor protection.

Market Impact

The introduction of stricter free float requirements is likely to have significant implications for listed companies and market dynamics. Companies with low free float percentages may need to adjust their shareholding structures, potentially leading to increased market liquidity and improved price discovery.