Market Chatter: Indonesia Raises Free Float Requirement to 15% to Boost Market Reforms

MT Newswires Live04-01

The Indonesia Stock Exchange (IDX) has introduced a minimum free float requirement of 15% for listed companies, up from the previous 7.5%, as part of broader capital market reforms, Jakarta Globe reported Tuesday.

The rule, approved by the Financial Services Authority (OJK), aims to improve company quality, strengthen governance, and enhance investor protection. Companies have been given a transition period to comply, with large-cap firms required to meet the threshold by 2028 and smaller firms by 2029, the report said.

IDX is also pushing for stronger corporate governance practices, including improved financial reporting and mandatory training for board members and audit committees. Firms that fail to meet the requirement within the set timeline risk delisting under OJK regulations, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment