These 3 Delisting Scenarios for Indonesia's Stock Exchange and the Fate of Investors: Which is the Worst?

The Indonesia Stock Exchange has once again drawn the attention of market participants by announcing plans to remove the listing of shares for 18 issuers in mid-April 2026. This firm step, scheduled to take effect in early November, is based on the capital market authority’s commitment to protecting the continuity of public investment. Most of these issuers are on the delisting list because they have been legally bankrupt or have experienced temporary trading suspensions for more than 50 months without any signs of fundamental recovery. This mass announcement underscores the significant real risks of share investments in the secondary market. However, when examined more holistically, the corporate action of removing issuers from the exchange is not solely driven by financial crises. There are three main backgrounds underlying delisting events, each with a very different chronological sequence, strategic interests of the company owners, and impacts on investors. Fundamental Crisis and Legal Cases Leading to Bankruptcy The first and most risky scenario is forced delisting due to extreme liquidity crises that lead to bankruptcy and legal sanctions. Cases in this category represent a total failure of public company governance. PT Hanson International Tbk, with the stock code MYRX, is a real example of this scenario. The chronology began when the controlling shareholder, Benny Tjokro, became embroiled in a mega-scandal of investment fund manipulation at Jiwasraya and ASABRI insurance companies. This chain of cases triggered the seizure of the company’s assets by the Attorney General’s Office, which then completely paralysed the company’s business operations. The company ultimately defaulted on its debts, faced a long suspension by the exchange reaching the 48-month limit, and was declared bankrupt by the Central Jakarta Commercial Court before being officially removed from the exchange in July 2025. From the company owner’s perspective, business interests and reputation have been completely destroyed. The controller no longer has control over the company, has been sentenced to life imprisonment, and all strategic assets have been seized by the state. For the state, the MYRX case leaves a massive financial loss burden, although the Attorney General’s Office has attempted to seize 22% of the company’s shares. Meanwhile, the fate of public investors is at its lowest point. Given that public ownership reaches more than 66%, those retail investment funds are completely wiped out. The shares become dead assets, and the remnants of the company’s liquidation are seized by the state, leaving no room for capital return to minority shareholders who must bear 100% losses. Liquidity Efficiency and Voluntary Withdrawal The second scenario occurs when a company takes the initiative for voluntary withdrawal due to inactive trading liquidity conditions and compliance efficiency, even though its financial fundamentals are very stable. PT Tunas Ridean Tbk or TURI is an apt representation of this category. The chronology proceeded procedurally when management realised that their shares were rarely traded on the regular market and public ownership had shrunk to the minimum limit of 7.5%. Feeling no longer in need of raising funds from the public, the company applied for suspension in May 2022 to process privatisation plans. The main interest from the owner’s side, in this case Jardine Cycle & Carriage Ltd, is operational efficiency and ownership consolidation. By withdrawing from the exchange, the controller no longer needs to bear the annual listing cost burden for inactive shares. For the state, this scenario has a neutral impact because the business entity continues to operate normally and pays corporate taxes as usual. On the other hand, this condition actually provides significant benefits to public investors. Financial Services Authority regulations require owners to buy back remaining public shares through a voluntary tender offer. TURI shareholders at the time enjoyed fund liquidation at Rp1,700 per share, providing liquidity certainty above historical market prices before the company officially departed in April 2023. Solid Fundamentals and Execution of Go-Private Strategy The third scenario represents the most premium side of delisting, namely when a company with very healthy financial fundamentals and large assets chooses to withdraw from the exchange purely for absolute control purposes. PT Danayasa Arthatama Tbk with the stock code SCBD perfectly represents this category. As the manager of the most strategic business district in the capital, the company has very strong cash flow. The chronology began with management’s decision in 2020, which assessed that the company no longer needed equity funding access. The remaining public shares were also very small, only 0.07% of total issued shares. From the capital owner’s perspective, the strategic interest is absolute control over premium property asset values and financial data privacy. Becoming a closed company allows the controller to execute business strategies without public intervention and quarterly reporting obligations. The impact of this scenario on state revenue remains neutral because operational corporate tax obligations run without issues. For retail investors, the privatisation of this elite entity is an extraordinary profit realisation moment. To smooth its corporate action, the SCBD controller set the share purchase offer price at Rp5,565 per share, surging more than twice compared to its last trading price. This fact confirms that delisting actions do not always end in losses but can become a catalyst for maximum gains if they occur in issuers with strong fundamentals.