Natural Selection Begins: Not All Issuers Will Survive on the Indonesia Stock Exchange
New regulations requiring a higher minimum free float on the Indonesia Stock Exchange (BEI) are expected to trigger a process of natural selection, with some listed companies likely to opt for voluntary delisting rather than comply. Market analyst Yanuar Rizky stated that the rule would pressure issuers with a limited investor base, noting that companies with very few retail investors and pragmatic shareholders would struggle to meet the new requirements.
The BEI has mandated a gradual increase in the minimum free float from 7.5% to 15% as part of efforts to enhance market quality and expand the number of shares genuinely available for trading. Companies with a market capitalisation above IDR 5 trillion and an existing free float below 12.5% are given a transition period to meet the new targets.
Budi Frensidy, a capital market observer from the University of Indonesia, noted that while the rule would not be a significant issue for most issuers, it poses a major challenge for firms with ownership heavily concentrated among controlling shareholders and affiliates. He suggested that the exchange might prioritise a gradual adjustment period rather than immediate enforcement.
Two companies have already announced plans to go private. Telecommunications tower operator PT Solusi Tunas Pratama Tbk (SUPR) admitted it is unlikely to meet the minimum free float requirement within the transition period. Its controlling shareholder, PT Profesional Telekomunikasi Indonesia (Protelindo), has offered a buyback price of IDR 45,000 per share, a premium over the 12-month average daily high of IDR 42,295.
Data centre operator PT Indointernet Tbk (EDGE) is also choosing to delist after five years as a public company, citing strategic considerations and low trading liquidity. Management believes that operating as a private entity will simplify decision-making and provide greater flexibility for long-term strategy and investment. As of the end of January 2026, approximately 89.1% of EDGE’s shares were held by Digital Edge (Hong Kong), with the free float recorded at just 7.9%, well below the incoming threshold. Data from NeoBDM indicates that domestic individual investors held only around 7.69 million shares, or less than 0.5% of the total 2.02 billion shares outstanding, with foreign investors controlling roughly 99.6%.