Free Float 15 Percent Road Continues: Issuers Will Be Given Notation, OJK Prepares Exit Policy

JAKARTA - The minimum free float target of 15 percent on the Indonesia Stock Exchange will not be fired at once.

OJK is preparing a phased scheme, complete with a transition period and "exit policy" for issuers who are unable to meet the requirements.

Chairman of the OJK Commissioner Board, Friderica Widyasari Dewimenegaskan, the fulfillment of 15 percent will be gradual in the first year and in the second year.

"OJK will prepare an exit policy for issuers that may not be able to meet the 15 percent free float requirement," he told reporters, Friday, February 20.

In the transition period, OJK will provide clear markers so that investors do not buy in the dark.

"Special notation will be given to issuers who have not yet met this 15 percent free," said Friderica.

According to him, this notation provides convenience for investors because they have quick information about which stocks have met 15 percent and which ones have not.

Meanwhile, on the same occasion, the President Director of the IDX Jeffrey Hendrik said that the regulatory side had moved.

"The recording regulations related to the free 15 percent were completed on the 19th yesterday," said Jeffrey.

He added that the final draft would be submitted to the OJK and all of it was still on schedule.

The stakes are firm. Namely, issuers who hold too small a public portion will face labels, supervision, and exit options. Liquidity is no longer requested or forced to rise.