Jakarta (ANTARA) – The Indonesia Stock Exchange (IDX/BEI) has officially introduced new regulations governing minimum free-float requirements for companies seeking to launch an initial public offering (IPO).The revised rules, contained in Regulation No. I-A on the Listing of Shares and Equity Securities Other Than Shares Issued by Listed Companies, were announced in Jakarta on Thursday.The changes are aimed at strengthening market liquidity and investor confidence by ensuring that a sufficient portion of shares is available for public trading.Acting IDX President Director Jeffrey Hendrik said companies seeking to list on the exchange will now face minimum free-float thresholds that vary according to their market capitalization.Firms valued below Rp5 trillion must release at least 25 percent of their shares to the public, those valued between Rp5 trillion and Rp50 trillion must allocate 20 percent, and companies above Rp50 trillion must provide at least 15 percent.The regulation also introduces minimum share distribution requirements.For listings on the Main Board, companies must have at least 300 million shares in free float and a minimum of 10,000 shareholders registered under Indonesia’s Single Investor Identification (SID) system.On the Development Board, the thresholds are lower, requiring at least 150 million shares in free float and 5,000 SID holders.Operational track record is another key criterion, Hendrik said.Companies aiming for the Main Board must demonstrate at least three consecutive years of commercial operations in their core business, supported by audited revenue records.For the Development Board, the requirement is two years, with restructuring cases allowed to count the operational history of related entities under the same controlling shareholder.Hendrik said the measures are designed to balance investor protection with opportunities for companies of different sizes to access capital markets.The new rules reflect Indonesia’s broader effort to align its capital market standards with global practices, where free-float requirements are widely used to ensure liquidity and safeguard investors.The Indonesia Composite Index (IHSG) recently suffered a sharp correction following a periodic global index review by Morgan Stanley Capital International (MSCI), which reduced the weighting of several prominent Indonesian-listed stocks.The rebalancing triggered a mass sell-off by international fund managers and passive institutional investors mandated to align their portfolios with MSCI’s benchmarks.The resulting capital outflows created significant market volatility, ultimately serving as the catalyst for the sudden resignations of top leadership at the Financial Services Authority (OJK) on Jan. 30, who cited a moral responsibility to oversee the market’s recovery.