The Indonesia Stock Exchange (IDX) said that 17 listed companies had not met the free float requirements, or the minimum number of outstanding shares was 7.5 percent.

The Indonesia Stock Exchange Company Appraisal Director, I Gede Nyoman Yetna said, there are still many listed companies that have not met the provisions of shares owned by non-controlling and non-controlling shareholders of at least 7.5 percent or 50 million shares of the total paid-up capital.

"This is stated in provision V.1 of Exchange Regulation Number I-A. Based on IDX monitoring as of December 31, 2020, as many as 696 out of 716 or around 97 percent of listed companies have met the minimum free float and a minimum number of shareholders, there are 3 percent or 17 listed companies that have not fulfilled these requirements, including Listed Companies which is in the process of Voluntary Delisting, "he said in Jakarta, Monday (1/3).

On the other hand, according to Nyoman, nine listed companies are finalizing the plan to fulfill the proper requirements according to the conditions of each listed company.

However, Nyoman did not mention listed companies' names in detail, either those that had not met the requirements or those that were in the process of complying with the provisions.

Meanwhile, the authorities admit that they always guide listed companies that have not met the free float requirements, both in the form of requests for explanations and hearings to find out and hear about each issuer's obstacles and plans to comply with the provisions.

The IDX also continues to socialize in alternative corporate actions that the listed companies can carry out, followed by technical assistance and consultation to carry out their corporate actions smoothly. However, if the listed company has not met the provisions until the stipulated time, IDX will impose sanctions for not fulfilling these provisions with a monitoring period every three months.

On the other hand, to strengthen market liquidity by increasing the number of shares held by the public, IDX is intensively communicating with the Directorate General of Taxes to provide incentives. For this reason, the Government, through the Directorate General of Taxes, has issued Government Regulation No. 30/2020 concerning Decreasing Income Tax Rates for Domestic Taxpayers in the Form of Public Companies, which is the implementing rule of Perpu No. 1 of 2020.

The regulation provides appreciation in reducing the income tax rate by 3 percent lower than the rate for ordinary domestic corporate taxpayers and permanent establishments. To obtain this rate, a public company must meet several requirements, including having a minimum of 300 shareholders and share ownership of no more than 5 percent each.

"Hopefully, this can encourage listed companies to maintain and even increase their public shareholdings," said Nyoman.