OJK Ready to Raise the Free Float Share Limit This Year

Photo: Antara

JAKARTA - The Chief Executive of the Capital Market, Derivatives Finance and Carbon Exchange Supervisory Authority of the Financial Services Authority (OJK) Inarno Djajadi ensured that his party would make adjustments to the rules on the limit of free float shares this year.

"As soon as possible. This year, yes, yes, it must be in this year," Inarno said in a cegat interview after the 2026 Indonesia Stock Exchange (IDX) Trade Opening Ceremony in Jakarta, quoted by Antara, Saturday, January 3.

He explained that adjusting the rules for the free float limit of shares requires careful preparation and must be done gradually, or it cannot be immediately raised to a high limit.

"But, of course, this free float must have mature preparations, and must be tiered, it cannot be immediately high, for example 30 percent it cannot be, it must be gradual," said Inarno.

The reason, he explained, is that as the limit of free float of shares increases, more funds are needed to enter the capital market.

"Because what? Free float needs funding, the higher the free float, the higher the funding that must be prepared. Therefore, it is very necessary to deepen the market, including in it the demand must be strengthened, (investors) our retail has reached more than 20 million," said Inarno.

In addition to this, his party, together with the IDX and the Self-Regulatory Organization (SRO), will continue to strengthen the role of investors in the Indonesian capital market, especially the role of domestic institutional investors.

"Well, the participation of domestic institutional investors is very important, so that this balance between retail and domestic institutional investors," said Inarno.

Previously, Commission XI of the Indonesian House of Representatives (DPR RI) had approved the OJK's proposal regarding efforts to raise the free float limit for continuous listing obligations from the current 7.5 percent to a minimum of 10-15 percent in accordance with the value of market capitalization.

"It is carried out within a period that can provide an opportunity for adjustment for listed companies," said Deputy Chairman of Commission XI of the Indonesian House of Representatives, Dolfie Othniel Frederic Palit.

Commission XI of the Indonesian House of Representatives also agreed that OJK to draft a new free float policy, including calculating the number of free float shares at the time of initial listing only taking into account the shares offered to the public, by excluding shareholders per IPO (initial public offering).

Then, approving the proposal which requires new listed companies to maintain a minimum free float when listed for one year after the listing date.

Commission XI of the Indonesian House of Representatives provides support for OJK and BEI to carry out regulations related to free float regulations that lead to the strengthening of big caps and free float policies aimed at increasing market liquidity, preventing the risk of price manipulation, increasing transparency and investor confidence, and strengthening the deepening of the capital market.

"Commission XI of the DPR RI approves the efforts of the OJK and the IDX to increase free float as part of deepening the capital market and strengthening the national economy," said Dolfie.

For information, free float shares are regulations related to the limit of the number of shares of a company that are available for free trading to the public.