Jakarta (ANTARA) - The Indonesia Stock Exchange (IDX) is currently conducting a review regarding adjustments to stock listing regulations, including the free float (shares held by the public), while considering the conditions of listed companies and investor capacity.

IDX Director of Company Valuation, I Gede Nyoman Yetna, confirmed that every policy regarding free float will be examined from both perspectives, in order to create market balance and good liquidity.

"We will publish the draft adjustments soon to gather input from stakeholders," Yetna said in a statement received in Jakarta on Friday.

Yetna ensured that the IDX continues to consider the relevance of its regulations to conditions and dynamics in the capital market, and is benchmarking against common regulatory practices adopted by global exchanges.

"All regulations are also developed through a process of consultation with stakeholders," Yetna said.

For prospective listed companies, Yetna stated that the IDX is focusing not only on free float requirements but also on increasing the number of large-scale Initial Public Offerings (IPOs), which will directly support the total free float capitalization value on the IDX.

"Currently, the IDX is conducting a study to identify the obstacles faced by large-scale companies in conducting an IPO. The results of the study will serve as a reference for adjusting regulations," Yetna said.

The Financial Services Authority (OJK) is considering increasing the minimum free float from the current 7 percent to 10 percent.

"We will set the free float at a minimum of 10 percent, but we will also consider market capitalization," said Inarno Djajadi, Chief Executive for the Capital Market, Financial Derivatives, and Carbon Exchange Supervision at OJK.

Meanwhile, Mukhamad Misbakhun, Chairman of Commission XI of the House of Representatives (DPR), hopes the minimum free float in the Indonesian capital market can be around 30 percent, reflecting similar regulations in stock exchanges in other ASEAN countries.

"Yes, we are asking for it to be increased to at least above 30 percent. Among ASEAN countries, Indonesia has one of the lowest free float shares, and Indonesia must increase its free float share," Misbakhun said.

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Translator: Muhammad Heriyanto, Cindy Frishanti Octavia
Editor: Azis Kurmala
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