Shares at Just Rp1! These Indonesian Listed Companies Are Cheaper than Sweets
Currently, there are a number of listed companies on the Indonesia Stock Exchange (BEI) whose share prices are being traded at Rp1 per share. This condition differs from previous regulations, where the minimum price floor for shares in the regular market was set at Rp50 per share, often referred to by market participants as “gocap shares”.
Based on current market data, at least three listed companies have shares trading at the Rp1 price level. Below is the breakdown of listed companies and their market capitalisation values:
• PT Mitra Komunikasi Nusantara Tbk (MKNT) – Share Price: Rp1.00, Market Cap: Rp5.50 billion
• PT Sejahtera Bintang Abadi Textile Tbk (SBAT) – Share Price: Rp1.00, Market Cap: Rp4.75 billion
• PT Totalindo Eka Persada Tbk (TOPS) – Share Price: Rp1.00, Market Cap: Rp33.33 billion
Why Can Share Prices Reach Rp1?
Share prices reaching the Rp1 level are possible through the implementation of the Special Monitoring Board (PPK) policy by the Indonesia Stock Exchange. This regulation is formally outlined in Exchange Regulation No. I-X concerning the Listing of Equity Securities on the Special Monitoring Board.
Shares that fall within this board are no longer traded through the regular market mechanism but instead use the Full Call Auction (FCA) system, as regulated in Exchange Regulation No. II-X.
In the FCA trading system, the Indonesia Stock Exchange adjusts the lower Auto Rejection Boundary (ARB) limit. This regulation permits share price movements to decline to a minimum threshold of Rp1 per share.
Mechanism of Price Decline from Gocap Level to Rp1
In the FCA system, trading does not occur continuously. Buy and sell orders are collected first, then the exchange system determines a single equilibrium price based on the highest transaction volume in a particular session.
To facilitate price declines from the psychological threshold of gocap shares (Rp50) down to Rp1, the Indonesia Stock Exchange applies a special ARB restriction scheme and changes the tick size to Rp1.
The decline mechanism is divided into two stages. First, for prices above Rp10, shares are subject to a maximum ARB limit of 10 per cent per day.
Mathematically, if a share trading at Rp50 experiences continuous selling pressure without adequate buy interest, its price will correct by 10 per cent to Rp45 on the first day, then decline further to around Rp41 on the next day, and so on gradually until it touches the Rp10 level.
Once the share price is pressured and reaches the Rp10 point, the second stage ARB rule applies, with a fixed daily decline limit of Rp1. From this point onwards, downward movements no longer use a percentage basis.
Consequently, it takes at least nine consecutive trading days at the ARB limit for share prices to steadily decline from Rp10 until finally landing at the lowest level of Rp1 per share.
Criteria for Special Monitoring Board Placement
The Indonesia Stock Exchange transfers a company’s share listing to the Special Monitoring Board if the company meets one or more established criteria. Some of the main criteria include:
• Negative Equity: The company records negative equity or negative net capital in its financial statements.
• No Revenue: The company reports no revenue in its latest financial statements.
• Auditor Opinion: The company’s audited financial statements receive a disclaimer opinion from a public accountant.
• Legal/Debt Issues: The company or its main subsidiary is undergoing a Debt Payment Obligation Postponement (PKPU) process or is insolvent.
• Low Liquidity: The share has very low daily transaction liquidity on a continuous basis.
• Share Price: The average share price over the last six months in the regular market is below Rp51.
The implementation of the Special Monitoring Board and the Rp1 price limit is designed to facilitate fairer price discovery that reflects the fundamental condition of the company and market demand, as well as to provide investor protection.