Jakarta. The Indonesia Stock Exchange (IDX) has begun testing a plan to scrap the Rp 50 minimum stock price, paving the way for shares to trade as low as Rp 1 once all brokerage firms are ready for the new system.

IDX President Director Jeffrey Hendrik said the exchange is conducting mock trading and focus group discussions with exchange members, while asking brokerage firms to submit reports on their readiness to implement the change.

“The plan to eliminate the minimum price is already underway. The focus group discussions have started, and mock trading has also begun. We are now asking exchange members to submit their readiness reports to us,” Jeffrey told reporters at the IDX Building in Jakarta on Friday.

The initial trial has generally gone well, although around eight exchange members have yet to participate.

“Overall, it has been quite successful. There are around eight exchange members that have not yet participated. We will follow up with them in the next round of testing,” he said.

Jeffrey said the IDX has yet to set a date for the new Rp 1 minimum price to take effect, stressing that the exchange will only go live once all members are fully prepared.

“We will adjust the timing based on the readiness of all exchange members because we want to ensure that everyone is ready before we go live,” he said.

Under the planned policy, the IDX will lower the minimum price for shares traded on the regular and cash markets from Rp 50 to Rp 1 per share.

The move is expected to give investors greater flexibility in trading and support more efficient price discovery in Indonesia’s capital market.

Add as a preferred source on Google +