Indonesia bourse to phase in 15% free-float rule, may batch firms by readiness

MSCI

27/02/2026 08:43

Corrects paragraph 2 to make clear that the second batch of firms would have two years (not a year) to comply with the rule

JAKARTA, Feb 27 (Reuters) - The Indonesia Stock Exchange will implement in stages an upcoming requirement for companies to double their minimum free float, or freely tradable stocks, to 15%, its interim chief executive told Reuters on Friday.

The bourse may divide companies into batches according to their readiness to offer more stocks, with the first batch given a year to comply with the minimum free float level and the second batch two years, Jeffrey Hendrik said in an interview, adding the details were still subject to approval by the Financial Services Authority.

The comments are the clearest details authorities have given about the plan to increase the mandatory free float, among a raft of capital‑market reforms pledged since MSCI in late January warned Indonesia risked being downgraded to frontier market status as early as May over limited transparency that may have enabled price manipulation.

 (Reporting by Stefanno Sulaiman; Writing by Gayatri Suroyo; Editing by Martin Petty)

 ((gayatri.suroyo@thomsonreuters.com; +6569738278;))