The Indonesia Stock Exchange (IDX) has taken another strategic step to strengthen the country's capital market ecosystem. Through a series of evaluations of the Special Monitoring Board, the exchange authority plans to update the trading mechanism to make it more transparent, efficient, and offer more optimal protection for investors.
This development is being carried out gradually by proposing several fundamental changes. One crucial point is the simplification of the criteria for issuers entering the Special Monitoring Board. The IDX plans to remove three of the 11 current criteria: non-compliance with free float requirements, low transaction liquidity, and a one-day trading suspension due to unusual activity.
Meanwhile, other crucial criteria will remain in place. These include issuers with low share prices, disclaimer audit opinions, companies reporting no revenue, negative equity, and issuers undergoing Suspension of Debt Payment Obligations (PKPU) or bankruptcy proceedings.
In addition to simplifying the criteria, the IDX is also proposing significant changes to the auto rejection (AR) limits for stocks on this board. According to the latest proposal, the AR limit for stocks priced between Rp10 and Rp200 is set at 35 percent. Meanwhile, for stocks priced above Rp200 up to Rp5,000, the proposed AR limit is 25 percent, and 20 percent for stocks priced above Rp5,000.
These improvement measures are expected to foster a healthier investment climate. Alongside the AR limit adjustments, the IDX is also considering the implementation of a "Non-Cancellation Period" as an additional effort to maintain the stability of the transaction mechanism on the Special Monitoring Board.
