JAKARTA: The Indonesia Stock Exchange (IDX) has lowered the auto-rejection limit for share price declines to seven per cent from 15 per cent to curb market volatility and maintain orderly, fair and efficient trading.

The revised asymmetric threshold, introduced with the support of the Financial Services Authority (OJK), took effect on Monday and will remain in force until Dec 31, 2026, subject to further review based on market developments.

"This adjustment is also intended to give investors an opportunity to evaluate and digest available information, thereby supporting better-informed investment decisions based on Indonesia’s economic fundamentals," IDX said in a statement.

At Monday’s opening, the benchmark Jakarta Composite Index (JCI) fell 223.23 points, or 4.31 per cent, to 4,961.88, dropping below the psychologically important 5,000-point level.

The decline followed a sharp sell-off on Friday, when the JCI plunged more than eight per cent in early trading, triggering a 30-minute trading halt, before closing 11.57 per cent lower at 5,185.10.

The market turbulence came amid concerns over global index provider MSCI’s proposal to reclassify Indonesia from an emerging market to a standalone market, citing issues related to shareholding transparency and market governance.

MSCI has opened a consultation with market participants until April 30, 2027, with a final decision expected by the end of June 2027.

Under the revised provisions, the IDX said the upper auto-rejection limits remain unchanged at between 20 and 35 per cent, depending on share prices. Shares priced between Rp1 and Rp10 will retain their existing upper and lower limits of Rp1.

The changes were formalised under IDX Board of Directors Decree No. Kep-00157/BEI/10-2026 on equity securities trading, replacing the previous provisions issued in September. - Bernama