IDX Applies 7% Asymmetric Lower Limit Rule Until Year-End

IDX Applies 7 Percent Asymmetric Lower Limit Rule Until Year-End

• 19 Okt 2026 15:05 WIB

• Voice of Indonesia

Poin Utama

• IDX sets a 7 percent asymmetric ARB limit to curb stock market volatility through December 2026.

• Investors gain more time to assess market conditions under the new trading safeguard.

RRI.CO.ID, Jakarta - The Indonesia Stock Exchange (IDX) has lowered the Auto Rejection Lower (ARB) limit for equities to an asymmetric 7 percent in an effort to maintain orderly and efficient trading and manage market volatility.

The adjustment, announced on Monday, Oct. 19, 2026, has received approval from the Financial Services Authority (OJK).

“This adjustment also aims to provide investors with the opportunity to evaluate and analyze the available information, thereby helping them make better investment decisions based on the fundamental conditions of the Indonesian economy,” the IDX said in a statement.

The measure will remain in effect from Oct. 19 through Dec. 31, 2026. The policy will be reviewed afterward based on market developments.

According to the IDX, the adjustment is intended to help investors better absorb market information and avoid making decisions amid heightened uncertainty.

Under the new rules, the maximum daily decline for stocks subject to the ARB mechanism is capped at 7 percent, while upper price limits continue to follow existing thresholds.

According to MNC Sekuritas, auto rejection is a mechanism that sets limits on daily stock price movements during a trading session. The exchange’s trading system automatically rejects buy or sell orders once a stock reaches the upper or lower limits set by the IDX.

A stock that rises sharply to the upper threshold is subject to an Upper Auto Rejection (ARA), while a stock that falls sharply will reach the Lower Auto Rejection (ARB) limit.

The new asymmetric ARB rule means the maximum decline is now limited to 7 percent, while the upper price limits remain unchanged. (Gusti Panji)

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