IDX Strengthens Trading Quality and Liquidity via Liquidity Provider Programme

The Indonesia Stock Exchange (IDX) is implementing a Share Liquidity Provider (LP) programme as a measure to strengthen the quality and liquidity of share trading and boost investment appeal through more liquid, efficient, and transparent trading. The programme is expected to support more efficient trading through the provision of more consistent buy and sell quotes in the market by the Share LPs, thereby making it easier for investors to transact and supporting a more optimal price formation process.

The IDX assesses that the response and interest from Exchange Members (AB) towards the Share LP programme are showing positive development. To date, two securities firms are providing Share LP quotes, namely PT Phintraco Sekuritas since 20 April 2026 and PT Mandiri Sekuritas recently on 4 May 2026.

“This addition of AB participation demonstrates the growing interest of industry players in the Share LP programme and represents a shared commitment to supporting the improvement of trading quality and liquidity on the Exchange,” said Jeffrey Hendrik, Acting President Director of the IDX, as quoted on Tuesday (9/6/2026). Going forward, the IDX hopes the number of ABs joining this programme will continue to grow in line with increasing understanding and utilisation of the Share LP scheme in the market.

The inaugural quoting activity by Phintraco Sekuritas was carried out for five shares: PT Gudang Garam Tbk (GGRM), PT Pabrik Kertas Tjiwi Kimia Tbk (TKIM), PT Trans Power Marine Tbk (TPMA), PT Asuransi Tugu Pratama Indonesia Tbk (TUGU), and PT Wintermar Offshore Marine Tbk (WINS). The IDX noted that in the one-week period before and after implementation, these shares showed an increase in the average daily transaction value, with the percentage increase ranging from 25.98% to 119.44%. These results demonstrate the potential of Share LPs to enhance trading activity and liquidity in the market.

“We see that Share LP activities have a positive impact on improving the quality of trading and share liquidity in the market, which indirectly strengthens investor confidence in the Indonesian capital market,” Jeffrey added.

Phintraco Sekuritas President Director Ferawati added that the firm’s participation in the Share LP programme is part of its commitment to take a more strategic role in developing the quality and deepening of the Indonesian capital market. She assessed that since the start of implementation, the development of Share LPs has shown a positive direction in strengthening the trading structure on the Exchange.

According to her, the success of this programme requires close collaboration between the IDX, ABs, listed companies, associations, and investors so that the benefits of Share LPs can be felt more widely by all market participants. “In its implementation, we see that the effectiveness of Share LPs requires strong collaboration between the Exchange, Exchange Members, Listed Companies, and related associations, especially in building a more comprehensive understanding of the strategic function of Share LPs in supporting trading liquidity quality,” she said.

Ferawati explained that Phintraco Sekuritas has prepared its system infrastructure, dealing team readiness, and risk management framework to ensure that quoting activities can run optimally and sustainably. According to her, Share LP activities not only focus on providing quotes but are also part of an effort to build a more liquid, efficient, and credible market.

She added that the main challenge in Share LP activities is maintaining quote consistency amidst dynamic market conditions and constantly changing volatility. Therefore, LP activities require trading discipline, technological support, and robust risk management so that the liquidity created remains healthy and sustainable.

However, Phintraco Sekuritas views the prospects for Share LPs in Indonesia as quite favourable, aligned with the focus of the IDX and regulators on promoting market deepening and improving the trading quality of the Indonesian capital market. According to Ferawati, collaboration between the IDX, ABs, listed companies, associations, and investors will be a key factor in accelerating the effectiveness of the Share LP programme going forward.

Through this initiative, the IDX believes that with improving liquidity, increased trading efficiency, and a continuously developing market quality, the Indonesian capital market is expected to become increasingly attractive to investors and able to support the growth of a sustainable investment ecosystem.