The Indonesia Stock Exchange plans to eliminate its 50 rupiah minimum share price to enhance liquidity and improve price discovery. The exchange is gathering feedback from market participants and global investors before implementation.
Removing the minimum share price could enhance trading activity and make Indonesian stocks more attractive to a wider range of investors, potentially improving overall market liquidity and valuation accuracy.
The Indonesia Stock Exchange (IDX) is planning to eliminate its minimum share price of 50 rupiah. This move is intended to boost market liquidity and enable share prices to more accurately reflect their valuations.
IDX President Director Jeffrey Hendrik stated that discussions have taken place with the Association of Indonesian Securities Companies and the Indonesian Investment Managers Association to gather input from market participants. The plan has also been shared with global investors.
While specific details regarding the changes and their effective date were not disclosed, Hendrik indicated that the exchange is continuing to collect feedback and assess the readiness of its trading systems. The initiative comes amid ongoing scrutiny from global index providers regarding the transparency and investability of Indonesian markets.