Indonesia offers three-year timeline to lift public float to 15%

Published Wed, Apr 1, 2026 · 11:33 AM

INDONESIA will give some listed firms up to three years to raise their public float to at least 15 per cent as part of reforms to boost transparency.

Companies with a market value of under 5 trillion rupiah (S$379 million) will have to meet the minimum level of shares available for public trading by March 31, 2029, the Indonesia Stock Exchange said late on Tuesday.

Firms worth more than 5 trillion rupiah with a free float below 12.5 per cent must raise it to 12.5 per cent by March 31, 2027 and then 15 per cent a year later, it added. Firms with existing free float levels between 12.5 per cent to 15 per cent must meet reach 15 per cent by March 31, 2027. 

The timeline and rules cap months of consultations as Indonesian officials try to avert a possible MSCI market downgrade. The index compiler had raised concerns over investability earlier this year, a move that triggered a sharp market selloff.

“We see this as a pretty constructive move overall,” said Felix Darmawan, an analyst at PT BCA Sekuritas in Jakarta. “The timeline feels like a fair balance, giving companies enough time to adjust without creating sudden selling pressure, while still pushing for better liquidity and broader investor participation.”

The bourse has also raised the minimum float for initial public offerings to range from 15 per cent to 25 per cent, depending on the company’s market value, compared to the current 10 per cent to 20 per cent range. BLOOMBERG