IDX Asserts Stocks Priced at Rp50 or Below are Prohibited from Short Selling

The Indonesia Stock Exchange (IDX) is optimistic that the implementation of short selling policies and the removal of the minimum stock price limit of Rp50 will not burden the capital market. These two policies, rolling out in close succession, are considered to have incorporated measured investor protection mechanisms.

IDX President Director Jeffrey Hendrik revealed that the removal of the Rp50 minimum stock price floor will officially take effect from 28 September. This step is being taken to increase transaction liquidity and create much more transparent price discovery in the market.

Meanwhile, short selling will only become effective in early October. In the initial stage, the exchange will only select a limited number of LQ45 index stocks to implement this transaction mechanism.

Through the implementation of short selling, the IDX aims for a potential increase in capital market liquidity of up to 17%. However, the actual realisation of this liquidity growth will depend on the number of stocks and Exchange Members that obtain official short selling permits.

Jeffrey requested that market participants do not link the removal of the minimum price limit with concerns regarding short selling activities. This is because stocks included in the short selling scheme must meet strict criteria and are guaranteed to be part of the LQ45 index constituents.

“Therefore, it is highly unlikely that stocks currently priced at Rp50 will be allowed to be short sold,” Jeffrey told reporters, as quoted on Thursday (17/9/2026).

In other words, various restrictions and detailed regulations have been established to prevent massive pressure that could potentially disadvantage certain groups of investors.