Jakarta. The Indonesia Stock Exchange (IDX) is considering gradually raising the minimum public float requirement for listed companies to as high as 30 percent, following a proposal from lawmakers seeking to boost market liquidity and align Indonesia’s capital market with global benchmarks.

IDX Director of Corporate Valuation I Gede Nyoman Yetna said the exchange is drafting a medium-term roadmap to increase free float levels without burdening smaller issuers.

“It can’t be uniform. The increase will depend on each company’s capacity,” Nyoman said during the Investor Daily Summit (IDS) 2025 at the Jakarta Convention Center on Wednesday.

House of Representatives (DPR) Commission XI Chairman Mukhamad Misbakhun earlier proposed lifting the minimum public float from the current 7.5–15 percent range to 30 percent. He argued that Indonesia’s low free float ratio limits trading activity and dampens investor interest.

Nyoman said the exchange supports the goal of improving market liquidity and quality, but prefers a phased approach that reflects issuers’ readiness. He added that higher free float levels could help Indonesian equities qualify for inclusion in major global indices such as MSCI, strengthening international investor confidence.

Alongside the free float plan, the IDX is rolling out a broader policy shift aimed at improving market depth and sustainability. Nyoman said the exchange is moving away from merely increasing the number of listed companies to focusing on the quality and real economic contribution of issuers.

“We want to ensure listed companies bring real value to the economy. It’s not just about the number of issuers, but their quality,” he said.

As part of this strategy, the exchange plans to introduce a new “Lighthouse IPO” category to attract large-cap firms with a minimum market capitalization of Rp 3 trillion ($181.7 million) and a public float of at least 15 percent. The initiative targets major issuers that meet international standards and can help enhance market liquidity.

“The goal is to maintain liquidity and encourage large issuers to align with global benchmarks,” Nyoman explained.

To support this policy drive, the IDX and the Financial Services Authority (OJK) are finalizing new regulations to tighten governance and transparency among listed companies. The rules will impose stricter financial requirements on firms planning to go public.

“We want a capital market filled with healthy, growth-oriented companies,” Nyoman said.

Digital transformation remains another pillar of IDX’s modernization agenda. Platforms such as e-IPO and e-RUPS have made the listing process more efficient, transparent, and accessible to a broader range of investors.

Meanwhile, the Jakarta Composite Index (JCI) opened higher on Thursday, gaining 21.67 points or 0.27 percent to 8,187 in early trade, signaling continued investor confidence despite global headwinds.

“Our market continues to grow despite global slowdowns. This shows that investor confidence in Indonesia’s capital market remains strong,” Nyoman said.

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