OJK Tightens Free Float, Transparency Rules to Lift Listed Company Quality

JAKARTA, Investortrust.id — Fincancial Services Authority, or OJK, says it is strengthening the quality of listed companies by tightening free float requirements and transparency standards on Friday, Jan 2, 2026 in Jakarta to deepen liquidity and bolster investor confidence, a move expected to reshape capital market governance. The reforms target listing entry rules, public share ownership, beneficial owner disclosure, and clearer delisting mechanisms to lift market integrity.

Mahendra Siregar, chairman of the OJK board of commissioners, said the regulator had pursued comprehensive policy improvements from listing requirements to continuous free float to ensure higher-quality issuers. “OJK together with all stakeholders including the SROs are committed to implementing strategic programs focused on improving market integrity and depth, starting with strengthening the quality of listed companies through comprehensive policy refinement from entry requirements to increased free float including continuous free float,” he said during the opening of trading at Indonesia Stock Exchange (IDX)

He added that stronger disclosure of ultimate beneficial owners was essential to minimize abnormal trading and improve real liquidity. The step was also expected to address concerns from global investors and index providers such as MSCI, which had previously proposed a special free float calculation method for Indonesia.

OJK also pushed to broaden the investor base at home and abroad by encouraging a larger role for institutional investors, including mutual funds, insurers, and pension funds. Mahendra said governance and risk management strengthening for insurance firms and pension funds was nearing completion, enabling them to increase capital market exposure within prudent risk appetite.

In the same forum, Inarno Djajadi, OJK’s chief executive for capital markets, derivatives, and carbon exchange supervision, confirmed the free float policy would begin implementation this year in stages. “This year it will be applied, but free float must be prepared carefully and gradually. It cannot jump straight to a high level like 30 percent. It has to be phased,” he said.

Inarno explained that raising free float required significant funding, as higher public ownership meant larger capital commitments from issuers. He said market deepening on the demand side was therefore critical, noting that Indonesia’s retail investor base had surpassed 20 million.

He stressed the importance of strengthening domestic institutional investors to balance a market still dominated by retail participation. “The role of domestic institutional investors is very important so the balance between retail and domestic institutions becomes strong, because the composite index is still largely driven by retail investors,” Inarno said.

The reform push was underscored by the presence of all leaders of the Financial Sistem Stability Committee (KSSK) the 2026 trading opening, signaling policy coordination across the financial system. Alongside OJK officials, the event was attended by the governor of Bank Indonesia, the finance minister, the deposit insurance chief, and parliamentary leaders overseeing financial services.

Mahendra said such full attendance was rare globally and reflected strong coordination to safeguard stability while promoting growth. He reiterated OJK’s focus on investor protection, issuer governance, market conduct enforcement, and tighter oversight of financial influencers to protect minority and retail investors.

He also said OJK was adopting global best practices in equity market governance, learning from countries that had built strong growth narratives through better transparency, higher disclosure quality, and disciplined corporate management. “Finally, strengthening risk management and information technology governance remains a priority,” Mahendra said.