The President Director of PT Bursa Efek Indonesia (IDX), Jeffrey\nHendrik, believes that the implementation of short selling transactions\ncould increase the liquidity of the Indonesian stock market by up to 17\nper cent.<\/p>\n
The IDX will reintroduce short selling transactions gradually on 15\nSeptember 2026, with the Short Selling Securities List to be published\non 28 September 2026, becoming effective from October 2026.<\/p>\n
\u201cIf the transaction targets align with the studies we presented last\nyear, there is a potential for an increase in market liquidity of up to\n17 per cent from the liquidity levels at that time,\u201d Jeffrey stated\nduring a media interview at the IDX Media Room in Jakarta on\nWednesday.<\/p>\n
Jeffrey explained that the actual realisation of liquidity will\ndepend on two factors: the number of shares permitted for short selling\nand the number of Exchange Members (brokers) authorised to\nparticipate.<\/p>\n
\u201cYes, our liquidity has certainly increased today, but it will depend\nheavily on how many shares we allow to be short sold and how many\nExchange Members (AB) we grant permission to perform short selling,\u201d\nsaid Jeffrey.<\/p>\n
When asked about the projections from the study, he revealed that the\nprojected figure was calculated based on the assumption that short\nselling would be conducted by a relatively limited number of Exchange\nMembers.<\/p>\n
\u201cAt that time, the assumption was based on five (Exchange Members),\u201d\nJeffrey added.<\/p>\n
During the session, Jeffrey outlined three primary objectives for the\nreintroduction of short selling transactions.<\/p>\n
\u201cThe policy is being implemented for three reasons: first, to meet\ninvestor liquidity needs; second, to provide better price discovery; and\nthird, because this is a best practice in major stock exchanges\nworldwide,\u201d Jeffrey explained.<\/p>\n
In the initial phase on 28 September 2026, the IDX will publish a\nvery limited list of short-sellable stocks, specifically those within\nthe LQ45 index constituents.<\/p>\n
He noted that in the early stages, the number of stocks will likely\nbe limited to only 3 to 5 constituents from the LQ45 index.<\/p>\n
For context, short selling is a capital market transaction strategy\nwhere an investor borrows shares and sells them with the expectation\nthat the share price will fall, allowing them to buy the shares back\nlater at a lower price.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/idx-short-selling-could-boost-liquidity-by-up-to-17-per-cent-1789567889", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }