IDX Confident MSCI and FTSE Will Respond Positively to Rp1 Minimum Share Price
From the time we conducted Focus Group Discussions (FGD) and subsequently socialised the plan with market participants, the feedback we have received has been very positive.
Jakarta (ANTARA) - The President Director of PT Bursa Efek Indonesia (IDX), Jeffrey Hendrik, is optimistic that global index providers, including MSCI and FTSE, will respond positively to the adjustment of the minimum share price traded in the regular and cash markets, which is being reduced from the current Rp50 per share to Rp1 per share.
He stated that this confidence is based on the positive response from market participants during the socialisation and trial phases of the adjustment, which were conducted on 22 and 29 August 202 scale.
“Starting from our FGDs and then our socialisation with market participants, the feedback we received was very positive. Since the feedback from participants is so positive, we have high hopes that MSCI, FTSE, and other global index providers will also respond to this positively,” Jeffrey said during an interview with journalists at the IDX Building in Jakarta on Tuesday.
However, he revealed that the regulatory adjustments regarding the minimum share price have not yet been communicated to the global index providers.
Previously, the IDX submitted a proposal regarding eight Action Plans for the Acceleration of Indonesian Capital Market Reform, in response to concerns raised by global index providers.
“But currently, we are conducting market reforms not just to address the concerns of MSCI, but to do what is best for our market. We aim to provide not only transparency and good governance but also to introduce liquidity and effective price discovery,” said Jeffrey.
He noted that the trial for adjusting the minimum share price in the regular and cash markets from Rp50 to Rp1 per share was generally successful, with 83 Brokerage Members (AB) declaring readiness, while eight members have yet to participate.
“Therefore, we are currently communicating intensively with the Brokerage Members who are not yet ready, providing them with necessary assistance. Our target for the ‘live’ implementation is the third or fourth week of September 2026, as we are waiting for the readiness of all Brokerage Members,” Jeffrey added.
The IDX conducted trials for the minimum share price adjustment in the regular and cash markets, alongside a new ‘auto rejection’ classification, with Brokerage Members on 22 and 29 August 2026.
The change in the minimum price threshold will allow shares currently at the Rp50 level to be traded within a wider price range.
The IDX also estimates that transaction frequency and value could increase by approximately two to three times if shares currently on the Special Monitoring Board, which are traded via ‘call auction’, can enter the regular market under a ‘continuous auction’ mechanism.