Jakarta. The Indonesia Stock Exchange (IDX) is currently reviewing its full call auction (FCA) measures, which have caused the stock market to plummet in recent weeks.

"All regulations and policies are subject to review to assess their effectiveness, goal achievement, and so forth, including the policies related to the Special Monitoring Board (SMB)," Jeffrey Hendrik, the Director of Development at IDX, told Beritasatu.com on Thursday.

The IDX began implementing the second phase of its FCA policy on March 25 to enhance investor protection. However, the policy has sparked more controversy than anticipated.

A recent example of the FCA controversy involves the stock of Barito Renewables Energy (BREN). As BREN was included in the Financial Times Stock Exchange (FTSE) Global Equity Index, its soaring stock was placed on the IDX’s Special Monitoring Board, where the FCA rules apply, on May 29. Under the FCA policy, BREN requires periodic auctions in five sessions a day for 30 days. The shares have plummeted 40 percent as of Thursday's closing, falling to Rp 6,700, making Barito Renewables lose its status as the largest company in terms of market capitalization.

Despite its aim to protect investors, the policy is perceived to have destabilized the market, causing the IDX Composite Index to fall below the 7,000 level. Some investors mentioned difficulties in reaching a consensus on agreed prices, forcing them to sell stocks at a loss. Analysts and investors have urged the IDX to review or cancel the policy.

Jeffrey stated that although there is no potential for the FCA policy to be canceled immediately, the IDX will implement several necessary adjustments. According to him, the FCA rules were created and implemented through an extensive study, making it impossible to retract the regulations quickly.

"We can't just hastily revoke the policy, but adjustments and reviews will be conducted continuously for all regulations and policies," he said.

"The SMB is not necessarily an indicator of a company's negative condition or a sign of punishment from the exchange," he added.

Jeffrey asked the public to be patient while waiting for the results of the FCA rule review.

"Let's see what the review outcome will be," he added.

Furthermore, in accordance with regulations, all draft regulations or regulatory changes must receive approval from the Financial Services Authority (OJK).