Indonesia Raises The Bar: IDX Tightens Its Free Float Rules

The Indonesian Stock Exchange has overhauled its listing framework through a set of changes that reshapes how companies prepare for IPOs and how existing listed companies manage their shareholder base. The areas of greatest practical impact are the new free float definition, the exclusion of pre-IPO shareholders from the initial free float calculation, the shift to market capitalisation-based thresholds, higher ongoing free float requirements, and the formalisation of controller lock-ups.

On 31 March 2026, the IDX issued IDX Regulation No. I-A and an accompanying Circular Letter, introducing tighter free float thresholds, a refined free float definition, and formalised lock-up requirements for controllers. The changes came into force immediately, with transitional arrangements for certain existing listed companies.