Why the IDX Is Tightening Rules for IPOs
TEMPO.CO, Jakarta - The Indonesia Stock Exchange (IDX) is strengthening requirements for Initial Public Offerings (IPOs) through the second phase of amendments to Exchange Regulation Number I-A on the Listing of Shares and Equity-Type Securities Other Than Shares Issued by Listed Companies (Regulation I-A).
This measure follows IDX’s ongoing efforts to accelerate capital market reform. It aims to strengthen the market’s structure and quality, improve the quality of listed companies (issuers), and enhance investor protection.
“This change has received approval from the Financial Services Authority (OJK), was issued on October 7, 2026, and became effective on October 9, 2026,” said Aulia Noviana Utami Putri, Acting Corporate Secretary of the IDX, in an official statement on Thursday, as quoted by ANTARA.
In the second phase of refinement, the IDX raised the financial requirements for prospective companies intending to list their shares on the exchange. In addition, the IDX has introduced a requirement for listed companies to maintain retained earnings as one of the criteria for remaining on the Main Board.
“Strengthening these requirements aims to ensure that listed companies possess adequate fundamentals and operational readiness to support the creation of a higher-quality and more sustainable capital market ecosystem,” said Aulia.
As part of implementing the principle of equality in the listing process, the IDX has also introduced a provision allowing prospective listed companies to designate specific shareholders holding more than a 5 percent stake as free-float shareholders.
However, this provision applies only if the beneficiaries are public investors who meet the exchange’s criteria and requirements. “This adjustment aims to provide a more proportionate approach to calculating free float, while upholding ownership transparency and market integrity,” said Aulia.
In line with amendments to Regulation Number II-A on Equity Securities Trading, Regulation I-A no longer prescribes a minimum price for Public Offerings. “This makes it easier for prospective listed companies to secure more optimal funding and offers potential investors the opportunity to acquire shares at a more affordable price,” Aulia added.
Aulia confirmed that the IDX consistently conducts comprehensive evaluations in accordance with regulations and based on data submitted by prospective listed companies.
Therefore, the IDX requires prospective listed companies to submit financial projections for the five years following their listing, equity research reports, and a summary of the securities listing application to demonstrate their commitment as IDX-listed companies.
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