IDX Opens Opportunity To Increase Free Float Share Limit To 7.5 Percent

Indonesian stock market (photo; Antara)

PT Bursa Efek Indonesia (IDX) opens the opportunity to increase the public-traded share limit (free float) by more than 7.5 percent in the future.

"Well, we are trying to increase the 7.5 percent. But, it will wait a while, because, the 7.5 in 2023 we have increased from the score side," said IDX Director of Corporate Assessment I Gede Nyoman Yetna quoting Antara.

He said his party would see current developments before increasing the free float limit for stocks again, in the midst of many companies that have not met the free float rule by 7.5 percent by the end of 2023.

"Regarding the increase in free float in the future, of course we will see current developments. We are monitoring it, hopefully after January 10, 2023, we will tell you how many do not fulfill it," said Nyoman.

Through the Securities Administration Bureau (BAE), he confirmed that he would report companies that had not met the free float rules of 7.5 percent on January 10, 2023.

"On January 10, 2023, a report will be issued from BAE. So, as of December 2023, through a report issued at the beginning of the year, at the beginning of the week in January we will see," said Nyoman.

Over the past two years, the IDX has provided opportunities for companies to comply with the free float rule of 7.5 percent, with the latest December 2023 limit.

"In 2023 December, the deadline for us to monitor free float is already in effect from 2021, we will give it two years, 2022-2023 to ensure that 7.5 percent is achieved," said Nyoman.

The regulation is in accordance with the provisions contained in Amendment to Regulation Number IA concerning Share Registration and Equity Effects Apart from Shares Issued by Registered Companies, which took effect on December 21, 2021.

In this regulation, companies can remain listed on the IDX if they meet these criteria, starting with a maximum of two years from the time the rules apply.

If within 24 months these provisions cannot be met by the company, the IDX will give the issuer a penalty in the form of a fine of Rp. 50 million along with administrative sanctions.