Jakarta. Indonesia’s plan to require a minimum 15% free float for listed companies will require a two-to-three-year transition period, as regulators move to ensure the policy strengthens — rather than disrupts — market stability.

Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX) are accelerating preparations ahead of the rule’s implementation, while the bourse rolls out a comprehensive assistance program for 267 listed companies that have yet to meet the threshold.

IDX Director for Company Assessment I Gede Nyoman Yetna said the exchange has formed a dedicated team to guide issuers through the compliance process in coordination with the Indonesian Listed Companies Association and other stakeholders.

“All 267 companies are required to meet the 15% free float. However, if the rule takes effect in March, it does not mean the requirement must be fulfilled immediately. There will be a transition period of two to three years under the draft currently being discussed,” Nyoman said at a press conference in Jakarta on Monday.

During the transition, IDX will set gradual annual targets. In the first year, issuers may aim for a free float of around 10%–12.5% before increasing progressively in subsequent years.

“The goal is to prevent companies from waiting until the final deadline. We will monitor compliance in each period,” he said.

Nyoman noted that each listed firm has different characteristics, meaning strategies to increase free float will be tailored accordingly. IDX has conducted internal mapping to determine the most suitable corporate actions for each issuer.

Three-Stage Assistance Program

IDX’s support program will be delivered in three main stages:

1. Business sessions to help companies improve business models and investor appeal before expanding public share ownership.
2. Corporate action sessions involving investment bankers to outline strategic options and identify optimal market timing.
3. Accelerated evaluation processes through IDX–OJK collaboration to speed approvals and ensure efficient execution of corporate actions.

“Companies will not be left to navigate this alone. Assistance will be structured from preparation through implementation,” Nyoman said.

Broad Engagement With Issuers

He emphasized the initiative covers all 267 non-compliant issuers, not just a limited subset.

“All listed companies will be invited to discussions. Communication formats and schedules are ready. Once the regulation takes effect, business sessions, corporate action planning, and direct assistance will begin immediately,” he said.

According to IDX, raising the free float is part of broader efforts with OJK to deepen the market, improve liquidity, and attract more institutional investors. “Like a pool, the deeper the water, the larger the capacity. Institutional investors have minimum free float requirements. With deeper markets, pricing becomes fairer, transactions increase, and participation widens,” Nyoman said.

The free float policy forms part of Indonesia’s long-term strategy to strengthen the capital market structure and improve listed company governance, IDX added.

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