IDX Says 7% Lower Auto-Rejection Limit Effectively Eases Investor Panic
Jakarta, CNBC Indonesia – The Indonesia Stock Exchange (IDX) considers the adjustment to the lower auto-rejection (ARB) limit for shares, from 15% to 7%, to have been fairly effective in easing investor panic amid continued selling pressure in the domestic stock market.
IDX President Director Jeffrey Hendrik said the policy was introduced to ensure that securities trading remained orderly, fair and efficient amid high market uncertainty.
“From our monitoring, the first session was fairly effective in easing market panic. When I went down earlier, our index was down by around 5%,” Jeffrey told reporters at the IDX building on Monday (19 October 2026).
Jeffrey explained that selling pressure in the stock market continued, but investor panic had eased compared with the previous Friday. He said this was in line with the aim of adjusting the ARB limit, enabling investors to make investment decisions in a more measured way.
Jeffrey said the market could continue to weaken, but trading should take place through proper mechanisms and be based on information made available equally to all investors. This, he said, should allow investors to make informed decisions rather than reacting solely to uncertainty and panic.
The new ARB decision came after the Jakarta Composite Index (JCI) fell 11.57% in trading on Friday (16 October 2026). The decline followed an announcement by MSCI that opened up the possibility of Indonesia being included in its standalone market index.
The IDX had previously adjusted the share ARB limit from 15% to an asymmetric 7%, with the support of the Financial Services Authority (OJK). The policy is intended to ensure that securities trading is orderly, fair and efficient, while also helping to maintain market stability.
The IDX said the adjustment also gives investors time to assess and digest available information before making investment decisions. The move is expected to help investors make better decisions by taking into account the fundamentals of Indonesia’s economy.
The rule change was established through IDX Board of Directors Decree No. Kep-00157/BEI/10-2026 concerning Regulation No. II-A on Equity Securities Trading. It replaces the previous regulation under IDX Board of Directors Decree No. Kep-00136/BEI/09-2026.
The 7% ARB limit took effect on 19 October 2026 and will remain in force until 31 December 2026. The IDX will review the policy in light of developments in market conditions.