15% Free Float Limit Regulation Set to Take Effect End of March 2026

The Financial Services Authority (OJK) has officially approved changes to Indonesia Stock Exchange (BEI) Regulation 1-A, which includes provisions for increasing the free float limit to 15%. The regulation will take effect at the end of March 2026.

Head of OJK’s Executive for Capital Market Supervision, Derivative Finance, and Carbon Exchange, Hasan Fawzi, stated that the approval has been given to the exchange with several adjustment notes. Additionally, compliance with the 15% threshold will be carried out in stages.

“Today, we have conveyed our approval to the exchange with notes for adjusting several points. The exchange’s task is to finalise the concept of Regulation 1-A, which we target to apply before the end of this March, in line with the target,” Hasan said when met at the Supreme Court Building on Wednesday (25/3/2026).

In addition to regulating free float, this revision of Regulation 1-A also tightens issuer governance standards. These include mandatory education for company officials, from commissioners to directors, and certification for public accountants who audit issuer financial reports.

OJK is also partnering with a Self-Regulatory Organisation (SRO) to form a joint working team that involves market participants from both the selling and buying sides. This team is tasked with conducting periodic evaluations and analysing market absorption capacity before issuers reach the maturity stage of free float compliance.

The exchange has also prepared an exit policy, or delisting, for companies that fail to meet the provisions within the specified timeframe. This is part of enforcing compliance with listing rules.

Meanwhile, for issuers planning to conduct an initial public offering (IPO), Hasan emphasised that the 15% free float requirement will apply directly once the regulation takes effect.