“We are studying this very seriously and we hope to be able to implement it in the near future,” Djajadi said during a press conference on Saturday (Nov 15). The current free-float minimum ranges from 7.5% to 10%.
For years, liquidity challenges have fuelled debate among investors given that Indonesia — Southeast Asia’s biggest market — has the region’s highest share of low free-float companies in its benchmark. Those concerns heated up last month after MSCI Inc asked for feedback on its calculation of public float, a move that analysts warn could trigger outflows if the methodology changes.
Meanwhile, the Indonesia Stock Exchange has also proposed the regulator calculate free float levels based on a company’s market value rather than its equity position, which would better capture market moves, president director Iman Rachman said at the same briefing. “We have also proposed easing requirements for rights issues to encourage an increase in free float levels,” he added.
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