OJK Will Minimum Free Float Shares Gradually Up To 25 Percent

Chief Executive Of Capital Market Supervisory, Derivative Finance, And OJK Carbon Exchange Inarno Djajadi (Aris Nurjani/VOI)

JAKARTA - The Financial Services Authority (OJK) said it would gradually increase the minimum free float limit for shares.

For information, the minimum free float provision is currently at 7.5 percent, which is considered still lower than regional standards.

Chief Executive of the OJK Capital Market, Derivative Finance and Carbon Exchange Supervisory, Inarno Djajadi, revealed that the target for the end of the share free float minimum is 25 percent. Even so, this increase will not be carried out at once, and in the near future, the OJK plans to increase the minimum limit to 10 percent.

"Well, maybe our target is 25 percent, but it's impossible for us to go directly to 25 percent because the consequences are quite a lot. So, we will gradually raise the name. Maybe in the near future we will increase it to 10 percent," said Inarno in media gathering, quoted on Sunday, November 16.

Inarno added that the minimum free float of 10 percent is expected to be applied to prospective issuers who will conduct an initial public offering (IPO) on the Indonesia Stock Exchange (IDX).

"Of course we will try to at least for the IPO in the future, we hope that at least 10 percent and the next is 15 percent and later it will lead to 25 percent," he explained.