Business · Companies · 8 hrs ago
Indonesia raises IPO requirements to strengthen investor protection
The Indonesia Stock Exchange has tightened rules for companies going public as part of wider efforts to protect investors.
The changes took effect on Oct.
9 and apply to companies seeking to list shares on the Jakarta-based exchange.
Only seven companies had listed by the third quarter, far below the exchange’s target of 50 for 2026.
The new rules raise financial requirements and require companies seeking the Main Board to have retained earnings.
Listed companies must also keep retained earnings to remain on the Main Board, while prospective issuers must publish financial projections for five years after listing.
The changes aim to build investor confidence amid concerns about market transparency and ownership concentration.
Analysts say stricter requirements could also mean fewer IPOs, making the exchange’s target harder to reach.
The Indonesia Stock Exchange has tightened rules for companies seeking to list shares, saying the changes are intended to strengthen investor protection.
The revised rules took effect on Oct. 9 and raise financial requirements for prospective issuers.
Companies seeking admission to the Main Board must have a retained earnings balance, and listed companies must maintain retained earnings to remain on that board.
The IDX also removed minimum IPO share prices and requires prospective issuers to publish financial projections for five years after listing.
Only seven companies had gone public by the third quarter, compared with the IDX’s target of 50 for 2026.
- Who
- The Indonesia Stock Exchange (IDX), which has tightened rules for prospective listed companies.
- What
- It revised IPO and listing requirements as part of capital market reforms intended to strengthen investor protection.
- When
- The rules took effect on Oct. 9, 2026.
- Where
- Indonesia, on the Indonesia Stock Exchange.
- Why
- The IDX said the changes aim to strengthen investor confidence and market integrity. The reforms also followed concerns about market transparency and ownership concentration.
This story does not have two clearly opposing sides.
Market volatility dragged the Jakarta Composite Index down by more than 30%, according to IDNFinancials.
The IDX issued a statement describing the changes as the second phase of improvements to Exchange Regulation No. I-A.
The revised listing rules took effect.
Seven companies had gone public, against the IDX’s target of 50 for the year.
- IPO listings by third quarter of 2026
- 7 companies
- IDX listing target for 2026
- 50 companies
- Rules took effect
- Oct. 9, 2026
- Main Board requirement
- Prospective issuers must have a retained earnings balance
- Financial projections
- Issuers must publish projections for five years after listing
- IPO share prices
- IDX no longer regulates minimum IPO share prices
3 sources
What people are saying
These adjustments aim to ensure a more proportionate approach to calculating free float, while maintaining ownership transparency and market integrity
The implementation of these changes is expected to further strengthen investor confidence while supporting the development of a credible, competitive and sustainable Indonesian capital market