The capital market can be said to be developed and developing if the involvement of the public is greater than the share ownership of the founders. Public share ownership is a reflection of democratization that business entities are no longer owned by a few people, but have opened up opportunities to be distributed equally according to their share ownership. The way in that direction was opened by requiring every public company to sell its shares in a certain amount, known as free float. Unfortunately, free float regulations in Indonesia are not ideal compared to other countries, this can be said considering the weak legal force of the Surat Keputusan Direksi PT Bursa Efek Indonesia No. Kep-00101/BEI/12-2021 Article V. This paper aims to find the latest views in the literature regarding the percentage ratio of free floats that can realize the sustainability of the capital market in Indonesia by using a comparative juridical normative method of regulations and legal decisions in Indonesia, Germany, Netherlands, United Kingdom and Australia. The results of this paper indicate that the regulation of free float in Indonesia is not ideal when compared to other countries to be able to support the sustainability of the Capital Market in Indonesia. This is due to the very small percentage of shares required to free float in Indonesia, the absence of strict sanctions, and the phrase "dapat (can)" which has weak legal force. If this arrangement is not revised, it can cause a massive failure of public companies to meet the minimum free float percentage obligation, resulting in low market appreciation for shares and low price returns and stock liquidity.

Keywords

Sustainability, Capital Market, Percentage Ratio, Free Float