Jakarta. The Indonesia Stock Exchange (IDX) is considering raising the minimum public float for listed companies to strengthen liquidity and attract broader investor participation in the country’s capital markets.

Lawmakers from Commission XI of the House of Representatives (DPR) have proposed increasing the minimum free float from the current 7.5–10 percent to at least 30 percent, citing Indonesia’s relatively low public shareholding compared with other ASEAN markets. “Indonesia has some of the lowest free float ratios. Increasing it above 30 percent will make the capital market more liquid,” said DPR Commission XI Chairman Mukhamad Misbakhun.

A higher public float, Misbakhun said, would allow broader investor access, encourage more active trading, and attract additional capital inflows into the market.

The IDX is currently reviewing adjustments to listing regulations, including free float requirements, according to IDX Director of Corporate Assessment I Gede Nyoman Yetna. “We are ensuring regulations remain relevant to market dynamics, benchmarking against global exchanges, and consulting stakeholders in the process,” Nyoman said Friday.

The exchange plans to publish a draft framework soon for public consultation. It is also promoting large-scale IPOs, known as “lighthouse IPOs,” to enhance market capitalization and free float. A lighthouse IPO must exceed Rp 3 trillion ($180 million) in market value with a minimum 15 percent free float, equivalent to Rp 700 billion. Five such offerings --Raharja Energi Cepu (RATU), Bangun Kosambi Sukses (CBDK), Yupi Indo Jelly Gum (YUPI), Chandra Daya Investasi (CDIA), and Merdeka Gold Resources (EMAS)—have been completed in 2025, providing a structural boost to liquidity.

EMAS’s Rp46.6 trillion ($2.9 billion) IPO makes it the 23rd company to go public in Indonesia this year, following 22 listings that raised a combined Rp10.4 trillion through early September, according to IDX data.

For existing listed companies, IDX monitors free float levels, conducts regular outreach, and enforces rules. Companies with less than 5% free float receive a special “X” notation and are placed on the monitoring board. The exchange also advises issuers on corporate actions that can expand publicly traded shares and improve trading quality.

Meanwhile, the Financial Services Authority (OJK) has proposed a more modest increase, raising the minimum free float requirement to 10 percent, according to OJK Capital Market Director Inarno Djajadi.

Free float, or the proportion of shares available for public trading, excludes holdings by major shareholders, controlling parties, commissioners, or directors. Regulators say a larger float is crucial for market depth and competitiveness, helping Indonesia attract more domestic and foreign investors.

Throughout 2024, trading data showed an upward trend, signaling improving market liquidity. The average daily transaction value reached Rp 12.9 trillion, supported by a daily volume of 19.9 billion shares and a transaction frequency of 1.13 million. As of Sept. 26, 2025, market capitalization rose to Rp 14,888 trillion from Rp 13,475 trillion in September 2024, while the average daily transaction value climbed to Rp 28.19 trillion, according to IDX data.

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