The Finance Commission XI of the House of Representatives (DPR) has approved the Financial Services Authority’s (OJK) proposal to raise the minimum free-float requirement for listed companies, a move aimed at strengthening market liquidity and enhancing transparency in the domestic capital market.

Under the proposal, the continuous listing obligation threshold currently set at 7.5 percent will be increased to a minimum of 10–15 percent, depending on market capitalization. The adjustment will be implemented gradually to allow listed companies time to comply.

“The implementation must be carried out within a timeframe that gives listed companies sufficient opportunity to adjust,” Commission XI Deputy Chair, Dolfie Othniel Frederic Palit, said during a hearing with OJK and the Indonesia Stock Exchange (IDX) on Wednesday, December 3. 2025.

New rules for IPO free float

Commission XI also endorsed several technical provisions proposed by OJK, including Revised calculation of free float shares at initial listing, which will only count shares offered to the public excluding pre-IPO shareholders.

Then a mandatory one-year holding period requires newly listed companies to maintain at least their initial free-float level for 12 months after listing.

Lawmakers said the revised framework is intended to support the development of large-cap issuers, boost trading volume, curb price manipulation, and nurture investor confidence.

“Commission XI supports OJK and IDX efforts to raise free float as part of capital market deepening and national economic strengthening,” Dolfie said.

While backing the initiative, Commission XI stressed that the policy must be designed in a gradual, measured, and differentiated manner. Lawmakers also called for stronger domestic investor participation, the introduction of adequate incentives, and more robust supervision to maintain financial stability and safeguard national interests.

Strengthening SMEs

OJK Chairman Mahendra Siregar emphasized that the updated free-float rules will ensure Indonesia’s capital market contributes more effectively to the broader economy, including by expanding opportunities for medium-sized and smaller enterprises to access funding.

The free-float requirement determines the portion of a company’s shares that are available for public trading. Regulators have long argued that higher free float improves liquidity, supports fair price discovery, and aligns Indonesia with international market standards.