Indonesia enhances capital market transparency

29 May 2026

The Financial Services Authority (Otoritas Jasa Keuangan “OJK”), the Indonesia Stock Exchange (Bursa Efek Indonesia “IDX”), and the Indonesia Central Securities Depository (Kustodian Sentral Efek Indonesia “KSEI”) have completed four initiatives to strengthen the transparency of the Indonesian capital market, namely: (i) increase of minimum free float requirement; (ii) a 1% disclosure threshold; (iii) high shareholding concentration; and (iv) granular investor classification.

This article provides an overview of each initiative.

Free float

IDX Decision No. 00045/BEI/03-2026 on the Listing of Shares and Non-Share Equity Securities Issued by Listed Companies (“Decision 45”) came into effect on 31 March 2026, replacing Decision No. 00101/BEI/12-2021 on the same subject (“Decision 101”).

Decision 45 strengthens free float policies and corporate governance. It does so by adjusting the definition of free float shares, increasing the minimum free float requirement, and introducing more comprehensive provisions on the classification and treatment of free float shares, particularly during the initial public offering process.

Decision 45 defines “free float shares” as scripless shares listed on the stock exchange that are held by shareholders representing less than 5% of total listed shares, and that are not held by controlling shareholders or their affiliates, by members of the board of commissioners or directors, or by the company itself through share repurchase. Such shares must also not be subject to any transfer restrictions - a new criterion that did not appear in Decision 101.

To remain listed on the stock exchange, a company must meet the minimum free float requirement, which has been increased from 7.5% to 15% of total shares. Decision 45 provides a transition period for companies to meet this requirement calibrated to their capitalisation size.

Listed companies with a share capitalisation of at least IDR5 trillion as of 31 March 2026 must comply with the following:

• Companies with a free float of less than 12.5% as of that date must reach 12.5% by 31 March 2027 and 15% by 31 March 2028.
• Companies with a free float of between 12.5% and 15% as of that date must reach 15% by
  31 March 2027.

Listed companies with a share capitalisation below IDR5 trillion as of 31 March 2026 must meet a free float of at least 15% by 31 March 2029.

The stock exchange may set an alternative deadline where a listed company has obtained approval from, or is subject to an order issued by, OJK.

A listed company that fails to meet the requirements on the number of free float shares and shareholders needed to remain listed will be subject to sanctions until it achieves compliance. Companies already under sanction for non-compliance will continue to be sanctioned under Decision 45.

1% disclosure threshold

In Joint Press Release No. 022/BEI.SPR/3-2026 and No. 004/KSEI/SKE/0226, issued on 3 March 2026, IDX and KSEI enhanced transparency in information disclosure by publishing a monthly list of shareholders holding more than 1% of a company’s shares on the exchange’s website here. Previously, the disclosure threshold for public share ownership was set at 5%. This information is expected to give investors a more accurate reference point when making investment decisions, thereby strengthening trust, integrity, and credibility in the Indonesian capital market.

High shareholding concentration

In Joint Decision No. 00047/BEI/03-2026 and No. 0024/DIR/KSEI/0426 issued on 2 April 2026, IDX and KSEI established a framework for identifying highly concentrated share ownership in listed companies (also known as a high shareholding concentration “HSC”). The policy aims to maintain the integrity of the share pricing mechanism and to ensure that free float shares reflect shares that are genuinely available and actively traded.

IDX and KSEI will review shares concentrated in the hands of a small number of shareholders and, where ownership is highly concentrated over a specified period, classify those shares as HSC. Shares so classified will be announced on the exchange’s website here.

For shares classified as HSC, IDX and KSEI will issue a re-announcement removing the HSC classification, no later than five trading days after completing the review and/or receiving written confirmation from the listed company, if the company’s shares are no longer in an HSC condition. No reannouncement is issued while the shares continue to be classed as HSC.

Granular investor classification

In Joint Press Release No. 64/OJK/DKPU/IV/2026, No. 28/BEI.SPR/04-2026 and No. 005/KSEI/SKE/0426, issued on 2 April 2026, IDX and KSEI enhanced data granularity and increased the number of investor categories from nine to 39. The new categories include banks, sovereign wealth funds, sole proprietorships, corporations, partnerships, political parties, and educational institutions.

KSEI will publish share ownership by category on the exchange’s website here.