Jakarta – In line with the Eight Action Plans for Accelerating Capital Market Reform, the Indonesia Stock Exchange (IDX) has announced amendments to the Listing Regulation Number I-A regarding Listing of Shares and Equity Securities Other than Shares Issued by Listed Companies, along with Circular Letter Number SE-00004/BEI/03-2026 regarding the Explanation of Listing Provisions for Shares and Equity Securities Other than Shares Issued by Listed Companies, which become effective today, Tuesday (31/3). The amendments have undergone the Rule Making Rule (RMR) process and have been approved by the Indonesia Financial Services Authority (OJK). These changes form part of Indonesia’s broader efforts to accelerate capital market reform, enhance the quality of Listed Companies, strengthen corporate governance, and reinforce investor protection.
IDX has refined the definition of free float shares and increased the minimum free float requirement to 15% of total listed shares to remain listed at the IDX. For initial listing, IDX introduces a market capitalization-based tiering framework, setting minimum free float thresholds at 15%, 20%, and 25%. IDX has also introduced specific free float requirements for Prospective Listed Companies conducting public offerings at certain offering value. To facilitate compliance, IDX provides flexibility through a mechanism that allows Listed Companies to apply for specific shareholders to be classified as free float shares. Further details on the revised definition of free float and the eligibility criteria for such shareholders are outlined in the Circular Letter.
IDX has provided an adequate transition period for Listed Companies to meet the minimum free float for continued listing requirement. Listed Companies are required to meet the revised free float thresholds in stages, based on their market capitalization, as of March 31, 2026. Listed Companies with a market capitalization of at least IDR 5 trillion and a free float below 12.5% must increase their free float to 12.5% by March 31, 2027, and to 15% by March 31, 2028. Meanwhile, Listed Companies with free float between 12.5% and 15% are required to meet the 15% threshold by March 31, 2027.
Listed Companies with a market capitalization below IDR 5 trillion are required to meet the 15% free float requirement by March 31, 2029. IDX will issue official letters to each Listed Company as a form of notification and confirmation of their market capitalization position, which will serve as the basis for determining the applicable transition timeline.
To support the implementation of these adjustments, IDX will conduct continuous socialization and assistance programs for Listed Companies following the enactment of Regulation Number I-A. These include providing hot desks and assistance support to assist Listed Companies’ readiness in meeting the free float obligations. Furthermore, IDX will also promote greater market absorption of free float shares through initiatives such as roadshows and live public expose, which connect listed companies with investors, as well as capacity-building programs to strengthen investor relations functions to boost strategic stakeholders communication. Collectively, these measures are expected to enhance transparency, improve the quality and compliance of Listed Companies with the prevailing regulations, while strengthening investor confidence in Indonesia’s capital market on a sustained basis.
In advancing the implementation of Good Corporate Governance (GCG), IDX continuously promotes improvements in financial reporting quality of Listed Companies. This includes certification requirement for financial reporting preparer or the appointment of qualified public accountants, as further detailed in the Circular Letter. These provisions aim to enhance the quality, accuracy, and credibility of financial statements, which are essential for informed investor decision-making.
In addition, IDX encourages members of the Board of Directors, Board of Commissioners, and Audit Committee of Listed Companies to participate in continuous education programs regarding capital markets and corporate governance, which will be mandated following the issuance of the relevant Circular Letter. This requirement is to be fulfilled on an ongoing basis to ensure a comprehensive understanding of capital market regulations and GCG practices. This initiative is expected to improve transparency, accountability, and the overall quality of financial reporting by Listed Companies, thereby strengthening investor confidence.
The amendments to Regulation Number I-A also include other enhancements to improve the quality of Listed Companies, including provisions related to retained earnings requirements for prospective companies listed on the Main Board and IDX’s authority to classify Listed Companies to support sustainability aspects, which will be further regulated through an IDX Decree.
Further information regarding the amendments to Regulation Number I-A and the Circular Letter can be accessed at:
