The IDX and OJK are reviewing the IPO free float rules, which will now be based on market capitalization.

Jakarta, October 17, 2025– The Indonesian Stock Exchange (BEI) is currently reviewing plans to change the provisions regarding the number of shares in circulation in the public (free float) for prospective issuers who will be listed on the stock exchange. If so far the requirementsfree floatdetermined based on equity value, in the future it will be changed to be based on market capitalization at the time of initial stock listing (Initial Public Offering/IPO).

From Equity to Market Capitalization

BEI Director of Company Assessment, I Gede Nyoman Yetna, explained that this change was made so that the size classification (size) prospective issuers become more relevant to post-IPO conditions. This is because the equity value used in current regulations reflects conditions prior to the public offering, which generally differs after the shares are listed on the stock exchange.

"We believe it is necessary to make adjustments to produce a classification.sizewhich is more relevant when the initial recording is carried out and becomes the basis for determiningtieringminimum requirementsfree float" said Nyoman, Tuesday (13/10).

Currently, the applicable regulations stipulate that companies with equity below IDR 500 billion are required to havefree floatminimum 20%, companies with equity between IDR 500 billion to IDR 2 trillion are required to have 15%, and for companies with equity above IDR 2 trillion, a minimum of 10%.

However, in the draft changes, this classification will be adjusted tomarket capitalization at IPO, is no longer the pre-IPO equity value.

New Proposal Based on Market Capitalization

Based on internal discussions and simulations conducted by the IDX and direction from the Financial Services Authority (OJK), the structure of the provisionsfree floatThe proposed ones are as follows:

BEI Director Nyoman Yetna added, based on the resultsbacktestingfor a number of issuers, this reference change has the potential to increase liabilitiesfree floatfor some prospective issuers.

“Some will be higher, for example previously it was at the minimumfree float10% becomes the minimumfree float15%. Thus, in the future it will also support efforts to increase the value offree float"The company is listed as a whole on the stock exchange," he explained.

Support from OJK

A similar policy is also being reviewed by the Financial Services Authority (OJK). Chief Executive for Capital Market Supervision, Financial Derivatives, and Carbon Exchange at OJK,Inarno Djajadi, confirming that the change of referencefree floatfrom equity value to market capitalization is a step to adapt to global conditions and practices.

“We will changefree float"In the future, the valuation will be based on market capitalization, which is currently based on equity value," Inarno said in a meeting with Commission XI of the Indonesian House of Representatives on Thursday (September 24).

In addition, OJK is also currently reviewingobligation continuous obligation free float, namely the obligation for listed companies to maintain a minimum portion of public shares.

Currently, the minimum requirementsfree floatsustainable is still 7.5%, and willincreased gradually to 10% in the next three years.

"We are studying togradually, later we willreview"But our target, still under study of course, is 10% in three years," he said.

Impact and Objectives of Policy

This policy change is expected to bring a number of positive impacts, both for the capital market and investors, including:

• Increase stock liquidityon the stock exchange, because the portion of public shares becomes larger.
• Increasing the attractiveness of institutional investorsagainst new shares that havefree floathigher.
• Adjusting issuer classification to actual market value, not book value.
  
  
• Promoting more transparent governance, in line with global standards.
  
  

For prospective issuers with small capitalizations, this adjustment can be challenging, as they would need to release a larger portion of their shares to the public. However, for the stock exchange and investors, this step is an effort to strengthen market quality and trading liquidity on the IDX.

Towards a More Liquid and Transparent Market

With the synergy between BEI and OJK, the plan to change the referencefree floatThis is part of a strategic step to strengthen the Indonesian capital market ecosystem.
BEI ensures that the details of classification and tiering adjustmentsfree floatwill be opened for public consultation before being officially implemented.

This policy is expected to createmore liquid, transparent and efficient markets, while providing greater protection and opportunities for public investors in Indonesia.

Sumber: https://www.cnbcindonesia.com/market/20251014143402-17-675668/bursa-akan-lakukan-penyesuaian-free-float-saham-ipo