Indonesia Stock Exchange sets 1-rupiah auto-rejection floor for shares priced 11-14 rupiah
In short
The Indonesia Stock Exchange has changed the automatic rejection to the downside (ARB) limit for shares priced between 11 and 14 rupiah, replacing the 7% limit with 1 rupiah per share. Chinese outlets reported on 20 October that the rule covers the Main, Development and New Economy boards and is provisionally in place until 31 December 2026.
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The Indonesia Stock Exchange has lowered the automatic rejection to the downside (ARB) limit for shares priced between 11 and 14 rupiah, CLS reported on 20 October. The limit is now 1 rupiah per share instead of 7%. CLS said the adjustment is part of efforts to ensure orderly, fair and efficient trading and to support better price discovery. [ 1 ]
Jiemian, followed by 36Kr, reported that the exchange announced the change on 20 October. The new rule applies to securities listed on the Main Board, Development Board and New Economy Board. It is provisional until 31 December 2026, after which the exchange will evaluate whether to extend it. Both outlets said the move followed a further evaluation after the exchange put an asymmetric 7% ARB mechanism into effect on 19 October. Yicai's item was a headline saying the exchange had further adjusted the lower limit for automatic rejection. [ 2 , 3 , 4 ]
Why it matters
The documents give the change as an effort to keep trading orderly, fair and efficient and to support better price discovery. They do not describe any market reaction, so its effect is not yet known.
Key facts
- The Indonesia Stock Exchange changed the automatic rejection to the downside (ARB) limit for shares priced between 11 and 14 rupiah. [ 1 , 3 , 4 ]
- The limit is now 1 rupiah per share instead of 7%. [ 1 , 3 , 4 ]
- The rule applies to securities listed on the Main Board, Development Board and New Economy Board. [ 3 , 4 ]
- It is provisional until 31 December 2026, after which an extension will be evaluated. [ 3 , 4 ]
- The change follows a further evaluation after the exchange put an asymmetric 7% ARB mechanism into effect on 19 October. [ 3 , 4 ]
- CLS reported the adjustment as part of efforts to ensure orderly, fair and efficient trading and to support better price discovery. [ 1 ]
Confirmed by several sources
Still unclear
- Whether the rule will be extended beyond 31 December 2026. Jiemian and 36Kr say only that an extension will be evaluated after that date.
- How the market responded to the change. The documents describe the announcement only and give no trading data or reactions.
- The new rule covers the Main, Development and New Economy boards and runs provisionally to 31 December 2026, with a later evaluation of an extension. Reported by a single source so far