IDX Unveils New Free Float Rules, Sets 25% Minimum for Some IPOs

JAKARTA, Investortrust.id — Indonesia Stock Exchange or IDX introduces new free float requirements on Wednesday, Feb 4, 2026 in Jakarta to strengthen market liquidity and investor participation as part of broader capital market reforms, a move expected to reshape IPO structures.

The exchange sets minimum public ownership at 15–25 percent depending on market capitalization, tightening listing standards for both the main board and development board.

The new provisions were contained in revised Rule I-A on equity listings and took effect immediately on Wednesday, Feb 4, 2026.

Under the main board rules, IPO candidates were required to have operated commercially in their core business for at least 36 consecutive months, proven by three years of recorded operating revenue.

The regulation also required a minimum free float of 300 million shares after the IPO or within five trading days before listing for already public companies.

For issuers with a pre-listing market capitalization below Rp 5 trillion, equal to about $310 million, the minimum free float was set at 25 percent.

Companies valued between Rp 5 trillion and Rp 50 trillion were required to release at least 20 percent of shares to the public, while those above Rp 50 trillion faced a 15 percent minimum.

The rules also tightened shareholder requirements, obliging new IPOs on the main board to have at least 10,000 single investor identification holders after listing.

For companies upgrading from existing public status, the minimum shareholder count was set at 1,000 SIDs one month before the IPO application.

On the development board, IDX imposed slightly lighter operational requirements, with issuers required to show at least 24 months of commercial activity.

Minimum free float on the development board was set at 150 million shares, with the same 25, 20, and 15 percent thresholds applied based on market capitalization.

Development board issuers were required to have at least 5,000 SID holders after listing, or 500 SIDs for companies already public prior to IPO submission.

IDX Director of Company Valuation I Gede Nyoman Yetna said the exchange would prioritize 49 large-cap issuers in enforcing the new 15 percent free float rule.

He said those 49 issuers represented around 90 percent of the total market capitalization of 267 listed companies that had not yet complied with the higher free float threshold.

“We will target these 49 first, even though all 267 must comply, because they already represent about 90 percent of the market capitalization of non-compliant issuers,” Nyoman said.

Despite the stricter rules, IDX maintained its optimism in achieving its 2026 IPO target of 50 new listings, including six large-cap lighthouse offerings.