Indonesia's Financial Services Authority held discussions with the Indonesian Listed Companies Association on follow-up steps for its capital market integrity reform agenda, with issuers signalling comprehensive support for a policy to raise listed companies’ free float to 15 percent. The package is positioned as going beyond ownership structure to include stronger transparency of Ultimate Beneficial Ownership, refined investor reclassification to improve the quality of the investor base, enhanced disclosure of shareholdings above 1 percent, a reordering of roles and certain limits for institutional investors to maintain market balance, and expanded continuous education and financial literacy for retail investors. The free float measure is framed as a lever to improve market structure and liquidity, broaden public investor participation, and strengthen issuer governance and transparency. Implementation is to be staged and measured, aligned with issuer readiness and market conditions. As a next step, the authority is drafting an indicative framework to be set out in Indonesia Stock Exchange regulations, while the exchange plans a help desk and dedicated team to support issuers through the transition.
OJK 2026-02-04
Indonesia's Financial Services Authority secures issuer association support for phased 15 percent free float policy and broader capital market integrity reforms
Indonesia's Financial Services Authority and the Indonesian Listed Companies Association discussed capital market integrity reforms, including a policy to raise listed companies’ free float to 15 percent. The reforms aim to enhance transparency, investor base quality, and market balance, with implementation aligned with issuer readiness and market conditions.