IDX Revises Lower Auto Rejection Limit Rules and Trading Halt Provisions

Jakarta – The Indonesia Stock Exchange (IDX) with the support of the Financial Services Authority (OJK) made adjustments to the Decree of the Board of Directors of the IDX Number Kep-00196/BEI/12-2024 regarding Amendments to Regulation II-A concerning Trading in Equity Securities and Decree of the Board of Directors of the IDX Number Kep-00024/BEI/03-2020 concerning Amendments to the Guidelines for Handling Continuity of Trading on the Indonesia Stock Exchange in Emergency Conditions.

The adjustment is made to the provisions on the implementation of the temporary suspension of Securities trading and the limit of the Lower Auto Rejection percentage as stated in the Decree of the Board of Directors dated April 8, 2025 Number: Kep-00002/BEI/04-2025 regarding Amendments to the Guidelines for Handling the Continuity of Trading on the Indonesia Stock Exchange in Emergency Conditions and Number Kep-00003/BEI/04-2025 regarding Regulation Number II-A regarding Trading of Equity Securities.

The two decrees will become effective on Tuesday, April 8, 2025.

“The Lower Auto Rejection percentage limit is adjusted to 15 percent for securities in the form of shares on the Main Board, Development Board, and New Economy Board, then Exchange-Traded Fund (ETF), and Real Estate Investment Fund (REIT) for the entire price range,” explained Kautsar Nurahma, Corporate Secretary of the IDX in an official statement, April 8, 2025.

Meanwhile, the provisions on temporary suspension of securities trading are adjusted as follows:

In the event of a decline in the Composite Stock Price Index (CSPI) within the same trading day, the stock exchange shall take the following actions:

1.        Trading halt for 30 minutes if the JCI has decreased by more than 8 percent

2.        Trading halt for 30 minutes if the JCI experiences a further decline of up to more than 15 percent

3.        Trading suspend if JCI experiences a further decline of more than 20 percent with conditions including until the end of the trading session; or more than one trading session after obtaining OJK approval or order.

Adjustments to the Lower Auto Rejection percentage are made to maintain market volatility and ensure investor protection.

Meanwhile, adjustments to the provisions for the implementation of temporary suspension of securities trading are carried out as an effort by the IDX to provide wider liquidity space for investors in determining investment strategies by considering available information.

“In implementing this policy, the IDX has also considered best practices on exchanges in the world and taken into account the input of market participants,” concluded Kautsar. (*)