Tightened IPO Rules Limit Retail Orders to 10 Percent as BEI Cuts 2025 Listing Target

JAKARTA, Investortrust.id — Indonesia’s Financial Services Authority tightened electronic IPO allocation rules on Tuesday, Dec 2, 2025 in Jakarta to increase retail participation and curb domination by large investors, a move intended to improve transparency and broaden access to primary market offerings. The new provisions introduced stricter verification, a firm 10 percent retail order cap, and a speed based allocation mechanism.

The change came after Indonesia Stock Exchange (IDX) revised its annual IPO target after slower listing activity, raising its 2026 goal to 50 companies while lowering the 2025 projection to 45 as it evaluated the smaller pipeline of issuers preparing for market entry.

The technical requirements were detailed in SEOJK 25/SEOJK.04/2025, which strengthened earlier guidance and required all investor orders submitted through the centralized allocation mechanism to be aggregated into a single total. OJK said this ensured no retail participant exceeded the permitted 10 percent limit of shares offered in an IPO.

The circular stated that any order exceeding the threshold would be rejected and returned for adjustment, a measure that reinforced the commitment to equal retail access in the primary market. The rule also mandated securities companies to verify all orders, consolidate client submissions, and ensure compliance before forwarding them to the allocation system.

BEI’s revised outlook followed a review showing 23 companies had listed by late October with another 13 in the pipeline. Iman Rachman said during a virtual briefing that the exchange adjusted this year’s expectations to reflect actual market conditions while maintaining confidence in reaching 50 IPOs in 2026.

The exchange simultaneously raised its target for lighthouse issuers, companies with assets of more than Rp 3 trillion, a free float of at least 15 percent, and minimum fundraising of Rp 700 billion. I Gede Nyoman Yetna said this reflected BEI’s focus on issuer quality and the stronger pipeline of large companies preparing for listing.

BEI data showed that IPO momentum had moderated compared with earlier years as 2025 trailed the 41 listings recorded in 2024 and the peak of 79 in 2023. The revised forecast incorporated a more balanced mix of small, medium, and large companies currently undergoing assessment.