The Indonesian Stock Exchange will gradually implement the 15% free float rule and may handle companies in batches based on readiness.

The temporary CEO of the Indonesia Stock Exchange said that the exchange plans to implement the upcoming requirement in stages, which will require companies to double the minimum free-trading shares to reach 15% based on their preparedness. Jeffrey Hendrick recently stated in an interview with the media that the Indonesia Stock Exchange may divide companies into batches based on their readiness to provide more shares to meet the 15% free float requirement. The first batch of companies is expected to complete this within a year, while the second batch will have two years to comply. He added that specific details are still pending approval from the Financial Services Authority. This is the clearest detail provided by the Indonesian government regarding the plan to increase the mandatory free float since MSCI warned at the end of January that Indonesia could be downgraded to a frontier market as early as May. The plan is one of a series of capital market reform measures pledged by the Indonesian government, with MSCI's warning citing limited transparency which could lead to price manipulation. "We have requested the Issuer Association to provide us with a prepared company schedule. We hope that the schedule will be quite active so that it can be completed as soon as possible," Jeffrey said.