FTSE Delists Four Indonesian Stocks as BEI Tightens Free Float Compliance Oversight

The Indonesia Stock Exchange (BEI) is closely monitoring the progress of compliance with public float requirements for listed companies after four Indonesian stocks were removed from the FTSE Global Equity Index Series (GEIS). Exchange authorities are ensuring ongoing communication with listed companies and issuer associations to guarantee compliance with public float rules, set at 15% and to be met incrementally. Interim BEI CEO Jeffrey Hendrik stated that the implementation of free float rules is ongoing, so the exchange continues intensive communication with market participants. ‘Regarding the free float compliance, since it’s still in progress, we’re maintaining communication with issuer associations to track progress, assess commitments, and see how the exchange can support them,’ Hendrik said at BEI’s Jakarta office on Monday (35/5/2026). ‘I believe we’ll continue monitoring progress, and we hope that all listed companies will meet the requirements in due time,’ he added. Free float is a key indicator in global index assessments as it reflects market liquidity and share openness. A smaller public float leads to lower trading liquidity. The free float enhancement policy under BEI Regulation No. I-A will be implemented cautiously, considering market realities. The Financial Services Authority (OJK) and Self-Regulatory Organization (SRO) have prepared a phased evaluation mechanism to mitigate the risk of delisting conglomerate issuers failing to meet the 15% minimum free float requirement. The evaluation will involve various stakeholders, including Indonesian issuer associations representing supply side, and securities companies and investment managers representing demand side. For example, companies with a market capitalisation above Rp 5 trillion and existing free float below 12.5% will have one year to reach the 12.5% target. They must then reach 15% by the end of the second year. Meanwhile, companies with market capitalisation above Rp 5 trillion and current free float between 12.5% and 15% have one year to meet the 15% target by 31 March 2027. The third group comprises companies with market capitalisation below Rp 5 trillion, all of which must meet the 15% free float requirement within three years.