OJK to Introduce New Free Float Regulations for IPOs

Enhanced Market Liquidity Measures

The Financial Services Authority (OJK) is set to introduce new regulations regarding minimum free float requirements for companies going public through Initial Public Offerings (IPOs). The policy, currently under discussion with various stakeholders, aims to enhance market liquidity and protect investor interests. OJK's Head of Capital Market Supervision, Inarno Djajadi, confirmed that the new rule will be implemented gradually to avoid market disruption.

Implementation Timeline

While the exact timeline is still being finalized, Inarno Djajadi indicated that the policy is expected to be released in 2026. The gradual implementation will allow both regulators and market participants to monitor and adjust to the new requirements effectively. The rule is designed to strike a balance between promoting market activity and maintaining stability in Indonesia's capital markets.

Market Impact Considerations

The OJK is carefully considering various factors, including current market conditions and the potential impact on both issuers and investors. By implementing minimum free float requirements, the regulator aims to create a more liquid and transparent market environment. This move is part of broader efforts to develop Indonesia's capital markets and enhance their attractiveness to both domestic and international investors.