[JAKARTA] Indonesia's financial regulator is considering raising the minimum free float requirement for listed firms to around 10 per cent to 20 per cent from 7.5 per cent, to increase liquidity in the market, a senior official said on Monday. "Our liquidity is still low compared to other countries and we want to increase the contribution of the capital market to the economy," Nurhaida, capital market supervisor at the Indonesia Financial Services Authority, told reporters.
The regulator is conducting a review and has not made any decision regarding timeline, she said.
Under the current rule, all listed Indonesian firms must have a free float of at least 7.5 per cent by Jan. 30, 2016. To meet that rule, cigarette firm PT Hanjaya Mandala Sampoerna Tbk sold $1.4 billion worth of shares earlier this year.