Jakarta, hitclubapk3 Indonesia
—
Financial Services Authority (
FSA
) reveals the challenges faced by
capital market
domestic market is no longer about the size of market capitalization (
market cap
), but the depth of liquidity.
Chief Executive of Capital Market, Financial Derivative and Carbon Exchange Supervision Inarno Djajadi said the current market capitalization is quite large, but not in line with the number of shares circulating in the public or
floating shares/free float
.
“In terms of market capitalization, we are the largest compared to our peers, but for example, in terms of
free float
is below it, meaning we can see that this IDX is one of the smallest in comparison
peers
“said Inarno in a meeting with Commission XI DPR RI, Wednesday (3/12).
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Inarno mentioned this time
minimum free float
even at 7.5 percent.Meanwhile, neighboring countries on average have above 25 percent of the minimum number of shares in circulation.
“When compared with
peers
“We are still the smallest,” he added.
He shared
floating shares
neighboring countries into three categories
small cap, medium
stamp
and
big cap
.
“Yang
smallcap
the portion is 23.58 percent, which is
medium cap
it is 21.84 percent, and which
big cap
that’s 25.48 percent,” he said.
Therefore, he believes that there is a need for new policies to improve the domestic capital market.OJK will also prepare new policies to encourage this
free float
domestically could be higher.
“For this reason, OJK has prepared a free float policy with two main approaches, namely initial free float and continuous free float,” said OJK DK Chairman Mahendra Siregar at the same meeting.
Floating shares
are shares of a publicly traded company that are available for public trading.This means that these are shares that are not owned by controlling shareholders, commissioners, directors or related parties.
For example, if a company has a total of 100 million shares outstanding, but 50 million shares are held by controlling shareholders and management, then the total
floating share-
the remaining 50 million shares can be traded publicly.
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