New Indonesian Stock Market Regulations Mandate Listed Companies to Maintain a Minimum 15% Public Float to Enhance Transparency

Glonghui, April 1 | As part of transparency enhancement reforms, Indonesia will give some listed companies up to three years to increase their public shareholding ratio to at least 15%. The Indonesia Stock Exchange announced on Tuesday evening that companies with a market capitalization below 5 trillion rupiah must meet the minimum public shareholding requirement by March 31, 2029. The exchange added that companies with a market capitalization above 5 trillion rupiah and a public shareholding ratio below 12.5% must raise the ratio to 12.5% by March 31, 2027, and to 15% one year later. Companies with a current public shareholding ratio between 12.5% and 15% must reach 15% by March 31, 2027. In addition, the exchange has raised the minimum public shareholding requirement for initial public offerings from the current range of 10%-20% to 15%-25%, depending on company market capitalization.