Indonesia to force billionaires to sell shares: loosen control or lose market status

Indonesia's stock market is facing regulatory reform due to concerns about low free float and concentrated ownership. The market watchdog will require newly listed firms to have a minimum free float of 15%, with existing companies eventually following suit. This change is a response to MSCI's concerns about the investability of Indonesia's $870 billion market, where billionaires often control a large percentage of listed companies, limiting the number of shares available for public trading. The new regulation aims to address issues like share price manipulation and opaque shareholding structures, highlighted by a recent market tumble and MSCI statement. The reforms will force billionaires to sell shares to increase public trading or potentially lose market status.

Explore how the topics in this article connect to other news stories