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Legal Insight: New Free Float Rules by IDX Regulation

2026.09.17

On 31 March 2026, Indonesian Stock Exchange (“<strong>IDX</strong>”) issued significant changes to its listing rules through IDX Board of Directors Decision No. Kep-00045/BEI/03-2026 on the Listing of Shares and Equity Securities Other Than Shares Issued by Listed Companies (“<strong>IDX Regulation I-A</strong>”), together with IDX Circular Letter No. SE-00004/BEI/03-2026 on Clarification of Provisions on the Listing of Shares and Equity Securities Other Than Shares Issued by Listed Companies (“<strong>IDX Circular Letter</strong>”). These changes were introduced to ensure that securities trading remains aligned with market developments.<br />
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The amendments revise both initial and ongoing listing requirements, including higher free float thresholds for initial listing, ongoing free float levels, and an enhanced free float share definition. This revision also introduces an updated market capitalization-based calculation methodology. It also requires financial reporting and continuing education for relevant internal stakeholders.<br />
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<strong><span style="color:#c0392b;">1. General Listing Requirements</span></strong><br />
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On IDX Regulation I-A, free float shares are now defined as scripless shares listed on the IDX that are:
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			<td style="width: 5%; font-size:18px; ver" valign="top">a.</td>
			<td style="font-size:18px">owned by shareholders, each holding less than 5% of the total listed shares;</td>
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			<td style="width: 5%; font-size:18px" valign="top">b.</td>
			<td style="font-size:18px">not owned by any controller(s) of the listed company or any affiliates of the relevant controller(s);</td>
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			<td style="width: 5%; font-size:18px" valign="top">c.</td>
			<td style="font-size:18px">not owned by any members of the board of directors or board of commissioners of the listed company;</td>
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			<td style="width: 5%; font-size:18px" valign="top">d.</td>
			<td style="font-size:18px">not treasury shares; and</td>
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			<td style="width: 5%; font-size:18px" valign="top">e.</td>
			<td style="font-size:18px">not required to be subject to transfer restrictions.</td>
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IDX Circular Letter further clarifies that the shares which are required to be subject to transfer restrictions include, among others:
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			<td style="width: 5%; font-size:18px; ver" valign="top">a.</td>
			<td style="font-size:18px">shares that are currently subject to a restriction period on the transfer of share ownership, whether imposed under applicable regulations or as part of a corporate action of the listed company;</td>
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			<td style="width: 5%; font-size:18px" valign="top">b.</td>
			<td style="font-size:18px">shares that are part of the portfolio of a venture capital company or private equity firm; and</td>
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			<td style="width: 5%; font-size:18px" valign="top">c.</td>
			<td style="font-size:18px">shares that are under seizure or a blocking order by law enforcement authorities or other competent authorities.</td>
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IDX has authority to require any controlling shareholders of a company intending to list its shares or equity securities other than shares (collectively referred to as “<strong>Prospective Listed Company</strong>”) to maintain its control and/or refrain from transferring part or all of its shareholding for a minimum period of 12 months following the relevant listing date, or for such other period as may be determined by the IDX. This lock-up will also apply to incoming controllers.<br />
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<span style="color:#c0392b;"><strong>2. Initial Listing Requirements</strong></span><br />
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The Prospective Listed Company shall fulfill at least the following requirements:
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			<td style="width: 5%; font-size:18px; ver" valign="top">a.</td>
			<td style="font-size:18px">Employ at least one individual responsible for the preparation of the company’s financial statements. Such individual may be a member of the Board of Directors or an employee and must hold an accounting competency certification issued by a recognized domestic or international professional organization; or</td>
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			<td style="width: 5%; font-size:18px" valign="top">b.</td>
			<td style="font-size:18px">Appoint a practicing accountant or public accountant to prepare the company's financial statements.</td>
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In addition, the IDX Regulation I-A requires all members of the Board of Directors, Board of Commissioners, and Audit Committee of a Prospective Listed Company to attend and complete continuing education programs specifically covering the capital market and corporate governance. This regulation also further tightens the various requirements that apply to Prospective Listed Company that are looking to list on the Main Board, which is required to record a positive profit balance in their most recent financial statements, as submitted at the same time as their listing applications.<br />
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There is also another update regarding the provision that specifically addresses the minimum number of free-float shares for the Prospective Listed Company. This requirement applies both after the public offering and to listed issuers during the five trading days immediately prior to listing, subject to a minimum free float of 300 million shares. Further, the method for calculating the minimum free float percentage is now based on market capitalization rather than shareholders' equity. The applicable thresholds for the minimum number of free-float shares are as follows:
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			<td style="width: 5%; font-size:18px; ver" valign="top">a.</td>
			<td style="font-size:18px">25% for companies with a market capitalization of less than IDR 5 Trillion;</td>
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			<td style="width: 5%; font-size:18px" valign="top">b.</td>
			<td style="font-size:18px">20% for companies with a market capitalization of IDR 5 Trillion to IDR 50 Trillion;</td>
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			<td style="width: 5%; font-size:18px" valign="top">c.</td>
			<td style="font-size:18px">15% for companies with a market capitalization of more than IDR 50 Trillion; or</td>
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			<td style="width: 5%; font-size:18px" valign="top">d.</td>
			<td style="font-size:18px">for companies conducting a public offering that ultimately raises at least IDR 30 Trillion, IDX has the authority to determine the minimum free float percentage.</td>
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These minimum free float percentage requirements apply equally to companies listing on both the IDX Main Board and the IDX Development Board.<br />
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<strong><span style="color:#c0392b;"><span color:=""><strong>3. Ongoing Listing Requirements</strong></span></span></strong><br />
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The current regulation introduces a stricter requirement by maintaining the same minimum number of shares but increasing the minimum free-float percentage to 15%, which should be achieved within one year of a listing date. This is based on each listed company’s market capitalization and free float position as at 31 March 2026 as summarized below:<br />
<strong>  </strong>

<table class="MsoTableGrid" style="border-collapse: collapse; border: 1pt solid #bbbbbb; width: 100%;">
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			<td style="width: 25%; border-top: 2pt solid #cc0000; border-right: 1pt solid #bbbbbb; border-bottom: 1pt solid #bbbbbb; border-left: none; background-color: #f2f2f2; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">Category</span></td>
			<td style="width: 25%; border-top: 2pt solid #cc0000; border-right: 1pt solid #bbbbbb; border-bottom: 1pt solid #bbbbbb; border-left: none; background-color: #f2f2f2; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">Free Float Position as at 31 March 2026</span></td>
			<td style="width: 25%; border-top: 2pt solid #cc0000; border-right: 1pt solid #bbbbbb; border-bottom: 1pt solid #bbbbbb; border-left: none; background-color: #f2f2f2; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">Required Free Float</span></td>
			<td style="width: 25%; border-top: 2pt solid #cc0000; border-right: none; border-bottom: 1pt solid #bbbbbb; border-left: none; background-color: #f2f2f2; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">Deadline</span></td>
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			<td rowspan="3" style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">1. Listed company with market capitalization value ≥ IDR 5 Trillion as at 31 March 2026</span></td>
			<td rowspan="2" style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">Below 12,5%</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">At least 12,5%</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">31 March 2027</span></td>
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			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">At least 15%</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">31 March 2028</span></td>
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			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">12,5% to below 15%</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">At least 15%</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">31 March 2027</span></td>
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			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">2. Listed company with market capitalization value < IDR 5 Trillion as at 31 March 2026</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">Any level below 15%</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">At least 15%</span></td>
			<td style="border-width: medium 1pt 1pt; border-style: none solid solid; border-color: currentcolor #bbbbbb #bbbbbb; padding: 3px 15px; text-align: center;" valign="middle"><span style="font-size: 16px;">31 March 2029</span></td>
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The new framework simultaneously repealed and replaced the following regulations:
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			<td style="width: 5%; font-size:18px; ver" valign="top">1.</td>
			<td style="font-size:18px">IDX Board of Director Decision No. KEP-00101/BEI/12-2021 on the Amendment to Rule No. I-A on the Listing of Shares and Equity Securities Other Than Shares Issued by Listed Companies; and</td>
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			<td style="width: 5%; font-size:18px" valign="top">2.</td>
			<td style="font-size:18px">IDX Board of Directors Decision No. Kep-00014/BEI/03-2022 of 2022 on Special Policy on Free-Float Shares for Listed Companies Implementing Shares with Multiple Voting Rights.</td>
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Along with these new regulations, the Financial Services Authority (<i>Otoritas Jasa Keuangan</i> or "<strong>OJK</strong>") issued OJK Board of Commissioners Decree No. 1/KDK.04/2026 on the Appointment of PT Kustodian Sentral Efek Indonesia ("<strong>KSEI</strong>") and IDX as Providers of Public Shareholding Data of Public Companies. Following the issuance of the decree, IDX and KSEI published a joint press release confirming that information regarding shareholders holding more than 1% of the shares in a listed company will be provided by KSEI and published monthly on the IDX website.

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