Indonesia's Financial Services Authority (OJK) plans to raise the minimum free float requirement for stocks from 7.5 percent to 15 percent to align with Morgan Stanley Capital International (MSCI) standards. This policy, alongside the demutualization of the Indonesia Stock Exchange (BEI), is part of broader capital market reforms. Implementation is targeted for March 2026.
Market analyst Ibrahim Assuaibi explained that the policy to increase the minimum free float for stocks to 15 percent and demutualize the Indonesia Stock Exchange (BEI) aims to meet international standards as part of Indonesia's capital market reforms. "The 7.5 percent free float is still below international standards, so the government is raising it to follow what MSCI wants," Assuaibi said when contacted in Jakarta on Tuesday, February 3, 2026.
The BEI demutualization is another input from MSCI for overhauling the capital market. "MSCI is asking for reforms; everything must be reformed, and if possible, even companies already listed on the exchange should be reorganized," Assuaibi added.
The Financial Services Authority (OJK) targets implementing the free float increase from 7.5 percent to 15 percent by March 2026. In meetings with MSCI, OJK Commissioner Friderica Widyasari Dewi stated that OJK and self-regulatory organizations have submitted proposals meeting MSCI's needs, including commitments to enhance transparency through disclosure of share ownership above 1 percent.
Additionally, OJK presented plans for more granular investor classifications, expanding from seven to 27 sub-types. Dewi emphasized the authorities' seriousness in executing the action plan to strengthen investor confidence in Indonesia's capital market.
