Indonesia has issued new regulations imposing a ceiling on IPO subscriptions per company to prevent price swings after discovering large groups buying up small IPOs, disrupting market stability.
On December 3, 2025, at 11:27 AM, Bloomberg News reported that the Indonesian Ministry of Finance announced limits on the number of shares investors can purchase in an initial public offering (IPO) to control price volatility in the market.
According to a circular from the Indonesian Financial Services Authority (OJK), each investor will be able to subscribe to a maximum of 10% of the total value of shares offered in an IPO. This rule took effect on November 17, the day the circular was issued. Previously, there was no subscription limit.
The OJK said in a separate statement, "The new rules aim to address share price volatility in small-cap IPOs, as some parties subscribe to a large number of shares. This could increase the risk of price volatility in the secondary market if shares are sold simultaneously."
Indonesia's regulator is moving to improve its trading system and deepen the domestic market, amid liquidity and price volatility challenges for Southeast Asia's largest stock market. The OJK has previously said it plans to gradually increase the minimum free float for listed companies to boost liquidity and attract investors, although no official timeframe has been set.
The Jakarta Stock Exchange has already listed 24 new companies in 2567, according to Bloomberg data.
Reference: bloomberg.com
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