The Indonesia Stock Exchange (BEI) will lower the minimum share price in the regular and cash markets from 50 rupiah to 1 rupiah starting September 28.
The automatic trading halt thresholds designed to prevent share prices from falling will also change in two stages.
The key point of this change is that shares with a low nominal price are not necessarily cheap investment opportunities.
3-Line Summary
1. The minimum share price will become 1 rupiah on September 28
2. The upper and lower limits for stocks priced at 1–10 rupiah will be 1 rupiah
3. It is difficult to assess value based on a low share price alone
Trading Floor Lowered from 50 Rupiah to 1 Rupiah
The BEI announced that it would adjust the minimum price for shares and infrastructure investment funds (DINFRA) traded in the regular and cash markets from 50 rupiah per share to 1 rupiah. The effective date is September 28, 2026. The BEI explained that the measure is intended to improve the quality of the price-formation process and increase market liquidity and investors’ flexibility in managing their portfolios.
Previously, 50 rupiah was effectively the lowest price at which trading was possible. Once the new rule takes effect, shares that had been at that price level will also be able to trade within price ranges in 1-rupiah increments. However, lowering the trading floor does not change the company’s business operations or financial condition. Bareksa pointed out that the fact that a nominal share price is low alone cannot determine whether a stock’s value is cheap or expensive.
Upper and Lower Limits to Become Symmetrical Starting in 2027
The change also includes adjustments to the automatic rejection upper limit (ARA) and lower limit (ARB). During Phase 1, which runs from September 28 through December 31, the ARA and ARB for stocks priced at 1–10 rupiah will each be set at 1 rupiah. For stocks priced above 10 rupiah, the existing asymmetrical thresholds will remain in effect, and the ARB 15% threshold will also remain in place during this period.
Phase 2 begins on January 1, 2027. The BEI said it plans to apply the ARA and ARB symmetrically from that point onward. Bloomberg Technoz reported that the relevant board decision was made on September 21 and that implementation would take place in stages. Accordingly, the September 28 change and the symmetrical application in 2027 should not be viewed as measures taking effect at the same time.
Announcement of Short-Selling Eligible Securities Also Scheduled for September 28
The BEI said it would announce the list of securities eligible for short selling on September 28 and aims to begin trading on October 1. Jeffrey Hendrik, head of the BEI, said that in the initial phase, approximately 3–5 of the constituent stocks in the LQ45 Index would be eligible for short selling. This is an announced plan, and the actual securities covered and implementation results must be confirmed through notices issued at that time.
The most important aspect of this system change is the distinction between the effective dates, rather than the minimum-price reduction itself. Trading at 1 rupiah will be permitted starting September 28, but the symmetrical application of the upper and lower limits will begin in 2027. The need to examine a company’s value and trading liquidity together, rather than focusing on the single number represented by a low share price, remains unchanged.
References
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