Phintraco's Preparations to Become Liquidity Provider for 5 Stocks on IDX
Phintraco Sekuritas’ President Director, Ferawati, has outlined the institution’s preparations for implementing the stock liquidity provider quota mandated by the Indonesia Stock Exchange (BEI). This policy aims to inject liquidity into listed issuers with low liquidity.
A liquidity provider is a financial institution or exchange member approved to act as a market maker, driving market activity. The activities of such institutions are expected to increase market liquidity, narrow spreads or price differences between shares, and ensure smooth and efficient transactions, particularly for less active stocks.
In the initial phase, Phintraco Sekuritas will provide buy and sell orders for five stocks. These include 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).
Ferawati stated that the main preparation for providing stock liquidity provider services is ensuring compliance with all requirements set by the Indonesia Stock Exchange. Internally, Phintraco Sekuritas is coordinating across divisions and strengthening internal controls and risk management. “To ensure the LP function runs optimally and in accordance with regulations supervised by the Financial Services Authority,” she said in a written statement to Tempo on Friday, 24 April 2026.
According to Ferawati, the role of a liquidity provider is not merely a quota obligation but part of a market deepening strategy. This step aims to improve liquidity quality and price efficiency in the market.
Ferawati explained that the selection of these five issuers for the programme was done selectively. Phintraco Sekuritas considered the companies’ fundamentals, the need for liquidity enhancement, and investor interest potential. “We see these issuers have good prospects but there is still room to increase trading activity,” she said.
Additionally, Ferawati added that the selection of these five issuers aligns with the market development direction promoted by the Indonesia Stock Exchange. “We continue to prioritise prudence and compliance principles in carrying out this role,” she stated.
BEI’s Director of Trading and Member Regulation, Irvan Susandy, said that the participation of exchange members as liquidity providers is an important element in enhancing liquidity and stock price formation quality. “We hope this step can encourage increased liquidity, especially for stocks with potential to develop more optimally,” he said in a written statement on Monday, 20 April 2026.
Irvan stated that the involvement of exchange members will be a key factor in the success of this programme. Therefore, BEI continues to encourage broader participation from market participants so that this initiative can run optimally.
He hopes this step can make the trading ecosystem more liquid, credible, and competitive. “This also demonstrates BEI’s commitment to market deepening,” he said.
Informally, liquidity providers have actually been operating for certain stocks. The Supervisory Board of the Indonesia Securities Analysts Association stated that this informality means supervision has not been maximal, potentially harming investors.
Nevertheless, Alfatih said this new policy could add appeal for institutional clients who require liquid stocks alongside good issuer fundamentals. The policy is also considered beneficial for retail clients or investors.
According to Alfatih, the success of this policy depends on the rules and supervision. “Don’t let there be periods of liquidity followed by illiquidity, creating a trapping impression,” he said.
On the other hand, Alfatih added that this liquidity injection could increase foreign investor interest with a wider range of stock choices. Therefore, investor options are not limited to a small portion of stocks like big caps or highly liquid ones. “Liquidity can be a positive factor for index increases,” he stated.