Jakarta. Indonesia’s capital market regulator is raising the stakes on listed firms, offering a formal exit route for companies that fail to meet stricter free float requirements as part of a broader push to improve market quality.

The Financial Services Authority (OJK) said issuers that cannot comply with the minimum 15% public shareholding requirement may opt to delist from the Indonesia Stock Exchange (IDX) under a forthcoming exit policy framework.

Hasan Fawzi, head of capital market supervision at OJK, said companies have until March 2027 to meet the first phase of the requirement, following the issuance of technical guidelines at the end of March 2026.

“March next year will mark the deadline for the first phase, followed by the second year and beyond. The guidelines have already been issued this March,” Hasan said after the inauguration of OJK board members at the Supreme Court in Jakarta on Wednesday.

He added that the free float rule will be implemented gradually, meaning issuers will not be required to immediately meet the full 15% threshold at the outset. However, once the policy takes effect, it will apply across the board, including to companies planning to go public through initial public offerings.

“Details on the exit policy will be regulated under the provisions related to the free float rule,” he said.

Data from OJK shows that only about 60% of the roughly 960 listed companies on the IDX currently meet the 15% free float threshold, underscoring the scale of adjustment required.

Despite introducing a potential delisting pathway, the regulator stressed that the policy is aimed at strengthening market quality rather than reducing the number of listed firms.

To support the transition, OJK will form a joint task force with key stakeholders, including the IDX, Kustodian Sentral Efek Indonesia and Kliring Penjaminan Efek Indonesia, as well as issuers, asset managers and investors.

“The task force will evaluate and analyze the market’s absorption capacity over time ahead of each compliance deadline,” Hasan said.

The move forms part of Indonesia’s broader capital market reform agenda following scrutiny from MSCI, particularly on issues of transparency and liquidity. Authorities have prepared eight follow-up measures, including tighter free float rules, to reinforce market integrity and improve trading liquidity.