JAKARTA - The Indonesia Stock Exchange (IDX) has confirmed that the minimum 15 percent free float share provision will not be implemented in February 2026. Currently, the exchange authority is still in the early stages of drafting regulations before the rules are officially implemented.
Interim Director of the Indonesia Stock Exchange (IDX) Jeffrey Hendrik said the process of implementing the 15 percent free float rule would begin this month in the hope that the implementation could also be carried out as quickly as possible.
"The process will start in February this year with the entry into the making rule stage for changes to the registration regulations," said Jeffrey when met at the Indonesia Stock Exchange (IDX) Office, Jakarta, Sunday, February 1.
Jeffrey targets that the implementation of this rule can be carried out before the deadline for improving the Indonesian capital market set by global index provider Morgan Stanley Capital International (MSCI).
Regarding the meeting with MSCI, Jeffrey said it would be held on Monday, February 2, afternoon and conducted online. At the meeting, the IDX will be represented by Jeffrey and his team.
"Tomorrow afternoon the meeting, wait there (MSCI) to start working. If from the Stock Exchange I will be present. From the OJK there should also be, but we don't know who," said Jeffrey.
For information, the free float share provision applicable to the Indonesia Stock Exchange is still at the level of 7.5 percent. For your information, free float shares are the percentage of a company's shares that are available for trading on the open market and are not owned by controlling shareholders, such as founders, parent companies, or entities that have a significant influence.
Meanwhile, shares in the free float category are generally owned by public investors and can be freely traded on the exchange.
Previously reported, the government has accelerated structural reforms of the capital market after developments related to MSCI and the assessment of other global institutions triggered turmoil on the exchange. Coordinating Minister for the Economy Airlangga Hartarto emphasized that Indonesia's economic fundamentals remain strong and fiscal-monetary coordination is going well.
"Indonesia's fundamentals remain strong economically. Fiscal and monetary coordination is going well," said Airlangga when giving an explanation to reporters at the Indonesia Stock Exchange (IDX), Friday, January 30.
The first step is to accelerate the demutualization of the IDX, namely a change in the structure of the exchange so that it is no longer owned by exchange members.
The goal is to reduce conflicts of interest between board members and exchange members and prevent unhealthy market practices. The stages have been regulated in the P2SK Law (Law on the Development and Strengthening of the Financial Sector).
Airlangga also emphasized that OJK and BI would increase the free float - the portion of shares that are actually in circulation in the public - from 7.5 percent to 15 percent.
"Compare Malaysia 25 percent, Hong Kong 25 percent, Japan 25 percent, Thailand 15 percent, Singapore 10 percent, the Philippines 10 percent, the UK 10 percent. We take a relatively more open figure," he said.
According to Airlangga, the increase in free float actually attracts investment. "If the free float goes up, investment will come in. Liquidity increases," he said.
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