15% Minimum Free Float Requirement Officially Implemented, Listed Companies Begin Adjustments

Starting at the end of March 2026, the regulation requiring a minimum public shareholding (free float) of 15% has officially come into effect in the Indonesian capital market. This policy is introduced by the regulator to enhance market liquidity and strengthen transparency within the stock exchange.

With the implementation of this regulation, listed companies are encouraged to adjust their ownership structures to comply with the new requirement. Companies that have not yet met the minimum threshold are expected to take strategic actions, such as divesting part of their holdings to the public or conducting other corporate actions.

An increased proportion of publicly traded shares is expected to boost trading activity and create a more dynamic market environment. With more shares available, investor interest may rise, and stock price movements are likely to better reflect actual market conditions.

However, market participants should closely monitor the adjustment processes undertaken by each company. Changes in ownership composition may lead to short-term price fluctuations, particularly for stocks that previously had limited free float.

Overall, this policy is expected to contribute to a healthier, more transparent, and competitive capital market, in line with ongoing efforts to strengthen Indonesia’s market structure.

Source: CNBC Indonesia