Under MSCI Spotlight, Indonesia Stock Exchange Tightens Supervision on Share Manipulation
Jakarta, CNBC Indonesia — The Indonesia Stock Exchange (IDX) has reaffirmed its commitment to improving trading infrastructure and strengthening regulations following the latest review by MSCI.
Acting President Director of the IDX, Jeffrey Hendrik, stated that the exchange aims to make stock transaction oversight more effective to suppress stock price manipulation practices. “Moving forward, it is expected that supervision will become more effective, so that records regarding manipulation and orchestrated trading will be better managed. On the other hand, we will continue to maintain market liquidity effectively,” Jeffrey explained at the IDX Building, Jakarta, on Friday (19/6/2026).
In conjunction with this, the Executive Head of Capital Market, Derivatives, and Carbon Exchange Supervision at the OJK, Hasan Fawzi, stated that a smart surveillance system has now been implemented for stocks suspected of price manipulation.
“The Indonesia Stock Exchange has limitations; they can only reach their members but face difficulties in reaching individual investors. The immediate action we refer to involves providing space for IDX supervisors to take rapid action whenever indicators exceed the parameters in the surveillance system,” he said after being interviewed at the CNBC Market Outlook 2026 event at the IDX Building, Jakarta, on Tuesday (3/3/2026).
Hasan explained that the IDX can directly contact and instruct exchange members to further investigate the motives and the ultimate identity of investors who trigger warnings. This procedure is known as Extended Due Diligence (EDD).
“This allows us to truly determine whether the investor is genuine, what their motive is, and whether there are indications of price manipulation or the use of nominees, where an investor’s account is being used by another party for manipulation purposes,” he revealed.
Hasan noted that this immediate action is intended to anticipate potential stock price manipulation before it escalates or results in victims. “We do not wait for the full results of an investigation; if it is an immediate action, it can be carried out,” he added.
Furthermore, in the medium term, strict supervision will be maintained through Unusual Market Activity (UMA) alerts for stocks moving outside of normal parameters. “UMA is a good mechanism to manage trends or market sentiments driven by herd behaviour. If there is an excessive or too rapid increase or decrease, we create a pause by first registering the relevant public company under Unusual Market Activity,” he said.
This ensures that investors have sufficient time to research information regarding significant stock price fluctuations. Additionally, stocks exhibiting abnormal movements may be subject to graduated suspensions.
“Ultimately, the final decision remains in the hands of the investors involved,” Hasan said.
Hasan added that these efforts are a response to halt violations in the capital market, including price manipulation in stock trading.