IDX Refines Special Monitoring Board to Strengthen Market Integrity
The Indonesia Stock Exchange (IDX) is preparing to refine the provisions of its Special Monitoring Board (PPK) based on an evaluation of the Full Call Auction mechanism, as part of its commitment to maintaining the integrity, quality, and efficiency of the Indonesian capital market.
The proposed refinements include changes to several PPK criteria and trading mechanisms, aimed at improving supervisory effectiveness, the quality of price discovery, trading efficiency, and investor protection.
IDX Development Director Iding Pardi stated in Jakarta on Tuesday that periodic evaluations represent the exchange’s commitment to ensuring that every policy remains relevant to market developments and delivers optimal benefits to all stakeholders.
“The IDX consistently evaluates all implemented policies to ensure they remain effective in supporting the creation of an orderly, fair, efficient, and transparent Indonesian capital market, as well as providing optimal protection for investors,” Iding said.
He explained that the evaluation of the PPK implementation revealed changes in trading activity patterns for certain stocks, particularly those included under non-fundamental criteria, namely criteria 6, 7, and 10. For stocks included due to non-compliance with free float requirements (criterion 6) and those subject to trading suspensions due to trading activity (criterion 10), the evaluation showed differing levels of effectiveness.
Iding added that the evaluation indicated each criterion possesses distinct characteristics and varying degrees of effectiveness in achieving policy objectives. Consequently, these findings serve as the basis for the IDX to adjust several provisions so that the trading surveillance mechanism can operate more effectively, adaptively, and sustainably.
Based on the evaluation results, the IDX is proposing the removal of criteria 6, 7, and 10, adjustments to criterion 11, and refinements to the trading mechanism on the Special Monitoring Board.
“These refinements are being made to align the policy with current market conditions, other policies that have been implemented, and input from industry players and stakeholders,” Iding said.
In addition to the criteria changes, the IDX is also proposing adjustments to the trading mechanism through the implementation of more tiered upper and lower auto-rejection limits on the PPK. “This adjustment is expected to make the auto-rejection mechanism more aligned with the characteristics of each stock price group, thereby supporting a fairer price discovery process, improving liquidity quality, and creating more orderly, fair, and efficient trading,” Iding noted.
As a further refinement to the trading mechanism, the IDX is also proposing the implementation of a Non-Cancellation Period on the PPK. This mechanism was previously applied during the pre-opening and pre-closing sessions starting 15 December 2025 and showed positive results by reducing order amendments and cancellations just before the price formation process.
Through the implementation of this mechanism on the PPK, the IDX hopes the price formation process will better reflect actual supply and demand conditions, minimise the potential for trading manipulation practices such as spoofing, and maintain stock price stability. It is also expected to increase the utilisation of the Market Order feature during the Call Auction session. The implementation of the Non-Cancellation Period will be carried out simultaneously with the implementation of the Trading and Surveillance System Renewal Project (PSPP).
Iding confirmed that the refinement of the provisions is not intended to restrict trading activity, but rather to improve trading quality so that the liquidity formed is healthy, transparent, and reflects genuine market conditions. “Thus, investors are expected to experience a price discovery process that increasingly reflects company fundamentals and fair trading activity,” he said.
He explained that the proposed rule changes are currently undergoing the Rule Making Rule (RMR) process, or public consultation with stakeholders, before being enacted as applicable regulations. Throughout this process, the IDX continues to engage Exchange Members, listed companies, associations, academics, and other market participants through various discussion forums and written submissions. He assured that all input will be comprehensively reviewed, taking into account policy objectives, the impact on market participants, international best practices, and alignment with prevailing regulations.
“Through this open and collaborative evaluation and refinement process with all stakeholders, we hope the resulting policies will be more adaptive to market dynamics, improve trading quality, strengthen investor protection, and further enhance the credibility and competitiveness of the Indonesian capital market, both regionally and globally,” Iding concluded.