The Indonesia Stock Exchange (IDX) is preparing to refine the\nprovisions of its Special Monitoring Board (PPK) based on an evaluation\nof the Full Call Auction mechanism, as part of its commitment to\nmaintaining the integrity, quality, and efficiency of the Indonesian\ncapital market.<\/p>\n
The proposed refinements include changes to several PPK criteria and\ntrading mechanisms, aimed at improving supervisory effectiveness, the\nquality of price discovery, trading efficiency, and investor\nprotection.<\/p>\n
IDX Development Director Iding Pardi stated in Jakarta on Tuesday\nthat periodic evaluations represent the exchange\u2019s commitment to\nensuring that every policy remains relevant to market developments and\ndelivers optimal benefits to all stakeholders.<\/p>\n
\u201cThe IDX consistently evaluates all implemented policies to ensure\nthey remain effective in supporting the creation of an orderly, fair,\nefficient, and transparent Indonesian capital market, as well as\nproviding optimal protection for investors,\u201d Iding said.<\/p>\n
He explained that the evaluation of the PPK implementation revealed\nchanges in trading activity patterns for certain stocks, particularly\nthose included under non-fundamental criteria, namely criteria 6, 7, and\n10. For stocks included due to non-compliance with free float\nrequirements (criterion 6) and those subject to trading suspensions due\nto trading activity (criterion 10), the evaluation showed differing\nlevels of effectiveness.<\/p>\n
Iding added that the evaluation indicated each criterion possesses\ndistinct characteristics and varying degrees of effectiveness in\nachieving policy objectives. Consequently, these findings serve as the\nbasis for the IDX to adjust several provisions so that the trading\nsurveillance mechanism can operate more effectively, adaptively, and\nsustainably.<\/p>\n
Based on the evaluation results, the IDX is proposing the removal of\ncriteria 6, 7, and 10, adjustments to criterion 11, and refinements to\nthe trading mechanism on the Special Monitoring Board.<\/p>\n
\u201cThese refinements are being made to align the policy with current\nmarket conditions, other policies that have been implemented, and input\nfrom industry players and stakeholders,\u201d Iding said.<\/p>\n
In addition to the criteria changes, the IDX is also proposing\nadjustments to the trading mechanism through the implementation of more\ntiered upper and lower auto-rejection limits on the PPK. \u201cThis\nadjustment is expected to make the auto-rejection mechanism more aligned\nwith the characteristics of each stock price group, thereby supporting a\nfairer price discovery process, improving liquidity quality, and\ncreating more orderly, fair, and efficient trading,\u201d Iding noted.<\/p>\n
As a further refinement to the trading mechanism, the IDX is also\nproposing the implementation of a Non-Cancellation Period on the PPK.\nThis mechanism was previously applied during the pre-opening and\npre-closing sessions starting 15 December 2025 and showed positive\nresults by reducing order amendments and cancellations just before the\nprice formation process.<\/p>\n
Through the implementation of this mechanism on the PPK, the IDX\nhopes the price formation process will better reflect actual supply and\ndemand conditions, minimise the potential for trading manipulation\npractices such as spoofing, and maintain stock price stability. It is\nalso expected to increase the utilisation of the Market Order feature\nduring the Call Auction session. The implementation of the\nNon-Cancellation Period will be carried out simultaneously with the\nimplementation of the Trading and Surveillance System Renewal Project\n(PSPP).<\/p>\n
Iding confirmed that the refinement of the provisions is not intended\nto restrict trading activity, but rather to improve trading quality so\nthat the liquidity formed is healthy, transparent, and reflects genuine\nmarket conditions. \u201cThus, investors are expected to experience a price\ndiscovery process that increasingly reflects company fundamentals and\nfair trading activity,\u201d he said.<\/p>\n
He explained that the proposed rule changes are currently undergoing\nthe Rule Making Rule (RMR) process, or public consultation with\nstakeholders, before being enacted as applicable regulations. Throughout\nthis process, the IDX continues to engage Exchange Members, listed\ncompanies, associations, academics, and other market participants\nthrough various discussion forums and written submissions. He assured\nthat all input will be comprehensively reviewed, taking into account\npolicy objectives, the impact on market participants, international best\npractices, and alignment with prevailing regulations.<\/p>\n
\u201cThrough this open and collaborative evaluation and refinement\nprocess with all stakeholders, we hope the resulting policies will be\nmore adaptive to market dynamics, improve trading quality, strengthen\ninvestor protection, and further enhance the credibility and\ncompetitiveness of the Indonesian capital market, both regionally and\nglobally,\u201d Iding concluded.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/idx-refines-special-monitoring-board-to-strengthen-market-integrity-1783407273", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }