Jakarta. The Financial Services Authority (OJK) has officially set a 15 percent lower auto-rejection limit (ARB) for stocks as part of broader efforts to maintain capital market stability and protect investors amid increasing market volatility.

The announcement came just days after the Indonesia Stock Exchange (IDX) suffered a sharp sell-off on Tuesday, triggering a temporary trading suspension as investors reacted to new US tariffs on Indonesian goods and mounting trade tensions between the US and China.

The Jakarta Composite Index (JCI) plummeted 9.19 percent in early trading Tuesday. Under the revised circuit breaker mechanism, a 30-minute halt will be enforced if the JCI falls more than 8 percent—up from the previous 5 percent threshold. A second 30-minute freeze is triggered if losses deepen past 15 percent. Should the index plunge beyond 20 percent, trading may be suspended for the remainder of the session with OJK’s approval.

Inarno Djajadi, Chief Executive of Capital Market, Derivatives, and Carbon Exchange Supervision at OJK, said the ARB policy is the result of a comprehensive review conducted in collaboration with market participants and self-regulatory organizations (SROs).

“This approach seeks to strike a balance between investor protection and market efficiency,” Inarno said at the agency’s monthly board of commissioners meeting in Jakarta on Friday.

The 15 percent ARB cap took effect on Tuesday, April 8, and applies to all stocks listed on the main board, development board, and new economy board, as well as exchange-traded funds (ETFs) and real estate investment trusts (REITs) across all price levels.

In tandem, the IDX has updated its trading halt policy in response to the recent volatility. The enhanced circuit breaker system aims to curb panic-driven selloffs while allowing time for market participants to assess developments.

As a further safeguard, OJK and IDX have suspended short-selling and allowed listed companies to conduct share buybacks without shareholder approval, as permitted under OJK Regulation No. 13/2023.

These temporary measures will remain in effect for six months starting March 18. As of April 9, 21 listed companies had submitted buyback plans totaling Rp 14.97 trillion. Of these, 15 issuers had executed buybacks amounting to Rp 429.72 billion.

“We will continue to evaluate the effectiveness of these measures and are ready to make adjustments as needed in response to future market developments,” Inarno said.