Jakarta. The Indonesia Stock Exchange (IDX) has formally lowered the minimum share price from Rp 50 to just Rp 1, allowing stocks previously stuck at the exchange's price floor to trade at lower levels based on market demand and supply.

The new rules, announced Monday and scheduled to take effect on Sept. 28, apply to shares traded on the regular and cash markets.

The change represents a significant departure from the longstanding Rp 50 floor. Under the previous system, a stock whose price had fallen to Rp 50 could not decline further in regular trading, even when selling pressure remained.

Under the new system, those shares will be able to trade below Rp 50 and potentially fall as low as Rp 1.

IDX has said the change is intended to improve liquidity and price discovery -- the process through which buying and selling determine a security's market price -- by allowing prices to better reflect actual supply and demand.

The exchange is also adjusting its auto-rejection rules, which automatically reject buy or sell orders that would push a stock beyond its permitted daily price range.

For stocks priced between Rp 1 and Rp 10, the maximum upward or downward movement will be Rp 1.

This means, for example, that a stock priced at Rp 5 could rise no higher than Rp 6 or fall no lower than Rp 4 within the applicable trading limit.

For stocks priced above Rp 10 and up to Rp 200, the upper auto-rejection limit will be 35%, while the lower limit will remain 15%.

Stocks priced above Rp 200 and up to Rp 5,000 will have an upper limit of 25% and a lower limit of 15%, while those trading above Rp 5,000 will have a 20% upper limit and a 15% lower limit.

The Rp 1 movement rule for stocks priced between Rp 1 and Rp 10 is designed to accommodate securities with extremely low nominal prices while maintaining limits on their movements.

IDX will apply the asymmetric percentage limits during a transitional period through Dec. 31. From Jan. 1, 2027, the exchange plans to restore symmetric auto-rejection limits, meaning the maximum permitted percentage increase and decrease will generally be the same for each price bracket.

The changes also cover units of infrastructure investment funds structured as collective investment contracts, known locally as DINFRA.

For DINFRA units priced between Rp 1 and Rp 10, the upper and lower auto-rejection limits will each be Rp 1. For units priced above Rp 10, both limits will be 10%.

The overhaul means certain securities listed on IDX can trade at prices as low as Rp 1, giving stocks previously pinned at Rp 50 considerably more room to move.

IDX has argued that removing the Rp 50 floor should improve price discovery by allowing the market to determine prices over a wider range rather than having shares accumulate at an artificial minimum.

The change does not mean that stocks currently trading at Rp 50 will automatically fall below that level. Their prices can move either higher or lower depending on buying and selling in the market.

At the same time, the revised auto-rejection system will continue to limit how far prices can move within the prescribed trading range, providing a mechanism to contain extreme movements even after the minimum price is reduced.

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