Analysts Highlight Increased Difficulty in Share Price Manipulation Following Implementation of 15 Per Cent Free Float Rule
Analysts Highlight Increased Difficulty in Manipulating Share Prices Following the Implementation of the 15 Per Cent Free Float Rule
- ANTARA FOTO/M Agung Rajasa
Jakarta, VIVA – The policy of increasing the proportion of publicly traded shares (free float) to a minimum of 15 per cent is believed to significantly change the dynamics of domestic capital market trading. This new regulation aims not only to increase liquidity but is also considered capable of narrowing the space for price manipulation, which has long been a concern for investors.
Head of Research at PT Korea Investment and Sekuritas Indonesia (KISI), Muhammad Wafi, believes that the minimum 15 per cent free float policy will have a positive fundamental impact in the medium to long term. He emphasised that a more evenly distributed share ownership structure will create a healthier market.
Wafi added that the larger the proportion of shares circulating in the public, the more difficult it will be for unscrupulous individuals to engage in share price manipulation. This is because control over the shares becomes more dispersed, making it difficult to concentrate them in the hands of a few parties.
As a result, the Indonesian capital market will be healthier. Share prices will also become more reasonable and reflect the company’s fundamentals.
“Because the more dispersed ownership structure makes it more difficult to manipulate or control the shares unilaterally by market makers, the formation of fair prices will become more optimal,” Wafi explained, as quoted by Antara on Wednesday, 25 February 2026.
Wafi believes that institutional investors will respond positively to this policy because it is in line with global standards. As is well known, international institutions often demand high transparency and liquidity from the Indonesian capital market.
“This is a catalyst to attract capital inflows back,” said Wafi.
Meanwhile, retail investors are expected to welcome this policy with optimism, although they will remain cautious. This is because the Financial Services Authority (OJK) plans to provide special notations for issuers that have not met the minimum free float requirements.
“However, retail investors must also be able to calculate the potential dilution from the issuer’s corporate actions,” Wafi continued.
On the other hand, issuers face their own challenges in meeting the new rules. They must carefully design a strategy to increase the number of publicly traded shares so as not to put downward pressure on share prices in the secondary market.
The Indonesia Stock Exchange (IDX) prioritises the initial phase of implementation for 49 large-cap issuers. Issuers that are slow to meet the requirements risk receiving special notations, which may affect the interest of institutional investors.