OJK Gives Banks Flexibility in Meeting Free-Float Requirements

JAKARTA — The Financial Services Authority (OJK) is allowing banks and their shareholders to choose an approach suited to each bank’s circumstances to meet the minimum 15 per cent free-float requirement. This flexibility applies as long as the chosen method complies with prevailing regulations and does not jeopardise the bank’s financial health or the sustainability of its operations.

“The approach needs to take account of the characteristics and ownership structure of each bank,” OJK Banking Supervision Chief Executive Dian Ediana Rae said in a written response in Jakarta on Friday (16 October 2026).

Dian said that free float and stronger capitalisation were, in principle, both needs banks should address. Banks should meet the free-float requirement while taking into account their capital position and individual business development plans.

The OJK recognises that, in certain circumstances, corporate actions to increase free float may overlap with a bank’s need to strengthen its capital. Banks therefore need to develop a strategy that considers both aspects comprehensively and in accordance with applicable regulations, Dian said.