Jakarta. The Financial Services Authority (OJK) has issued a new regulation limiting large purchases of shares in initial public offerings (IPOs), in an effort to increase retail investor participation.

Effective November 17, 2025, the rule raises the retail allocation to half of the centralized allotment — up from one-third under the previous regulation. The new policy also introduces a cap on centralized IPO bookings: investors may not order more than 10 percent of the securities offered. Orders exceeding the limit must be revised and will not be processed, a measure absent from prior rules.

The regulation also restructures IPO categories. Offerings valued up to Rp 250 billion — previously grouped in a single category requiring a minimum allocation above 15 percent — will now be split into two categories. The smallest category must allocate at least Rp 10 billion or 20 percent of the offering, an adjustment intended to support smaller issuers with wider share distribution.

Andrian Wijaya, CEO and founder of Venturewise, said the change addresses long-standing concerns over the concentration of IPO allocations among wealthy investors and institutions.

“Under the previous system, only a handful of investors could freely submit large bids and secure the shares,” Andrian said on Thursday. “With this regulation, retail investors have a greater right to own IPO shares. The distribution will be more balanced between retail and non-retail investors.”

However, he cautioned that broader share distribution could affect market performance. According to Andrian, spreading IPO shares across more investors may increase volatility and weaken post-listing price gains.

“There is a strong likelihood that IPO performance starting in 2026 won’t be as strong as this year,” he said, noting that from 25 IPOs this year, most delivered strong returns due to unrestricted bidding by affluent investors and institutions, with only three performing poorly.

“That shows the IPO market this year has been strong. Under the previous rules, investors could target shares according to their available funds,” he added.

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