IDX Officially Raises Minimum Share Free Float to 15 Percent

Jakarta (ANTARA) - PT Bursa Efek Indonesia (IDX) has officially adjusted the definition of share free float and raised the minimum free float threshold for remaining listed on the exchange to 15 percent of the total listed shares. Additionally, IDX has revised the free float requirements for initial listings to be based on market capitalisation with a new tiering of 15 percent, 20 percent, and 25 percent of the shares to be listed. “IDX has also established specific free float provisions for prospective listed companies with public offerings of certain values,” said IDX Corporate Secretary Kautsar Primadi Nurahmad in an official statement in Jakarta on Tuesday. The free float adjustment by IDX follows the enactment of amendments to Exchange Regulation Number I-A concerning the Listing of Shares and Equity Securities Other Than Shares Issued by Listed Companies. Kautsar explained that this change was carried out through the Rule Making Rule (RMR) process and has received approval from the Financial Services Authority (OJK). “This adjustment is part of efforts to accelerate Indonesia’s capital market reforms in order to improve the quality of listed companies, strengthen governance, and promote more optimal investor protection,” said Kautsar. To encourage listed companies to meet the minimum free float requirements, IDX provides facilities and support through mechanisms for all listed companies to apply for certain shareholders to be categorised as free float shares.