IDX Strengthens IPO Requirements to Improve Issuer Quality
The Indonesia Stock Exchange (IDX) has strengthened its listing requirements for initial public offerings (IPOs) through the second phase of revisions to Exchange Regulation I-A on the listing of shares and equity securities other than shares issued by listed companies.
The move follows IDX efforts to accelerate Indonesia’s capital market reforms on an ongoing basis, with the aim of strengthening the market’s structure and quality, improving the quality of listed companies, and enhancing investor protection.
“The changes have been approved by the Financial Services Authority (OJK), were issued on 7 October 2026 and will take effect on 9 October 2026,” IDX Acting Corporate Secretary Aulia Noviana Utami Putri said in an official statement in Jakarta on Thursday.
Under the second phase of the revisions, the IDX has raised the financial requirements for companies seeking to list their shares.
The exchange has also added a requirement for companies to have retained earnings as one of the criteria for remaining on the Main Board.
“These strengthened requirements are intended to ensure listed companies have sound fundamentals and adequate operational readiness, helping to support a higher-quality and more sustainable capital market ecosystem,” Aulia said.
As part of applying the principle of equality in the listing process, the IDX has also introduced a provision allowing prospective listed companies to nominate certain shareholders with holdings above 5 per cent to be classified as free-float shareholders.
This provision applies provided that the beneficial owners are public investors and meet the criteria and requirements set by the exchange.
“This adjustment is intended to ensure more proportionate treatment in calculating free float, while maintaining ownership transparency and market integrity,” Aulia said.
In line with amendments to Regulation II-A on equity securities trading, Regulation I-A no longer sets a minimum offering price for public offerings.
“This makes it easier for prospective listed companies to raise funds more optimally and gives prospective investors the opportunity to acquire shares at more affordable prices,” Aulia added.
Aulia said the IDX would continue to conduct comprehensive assessments in accordance with the rules and based on information submitted by prospective listed companies.
The IDX has therefore asked prospective listed companies to submit financial projections for the five years after listing, an equity research report, and a summary of their securities-listing application as a demonstration of their commitment to becoming an IDX-listed company.