The Indonesia Stock Exchange (IDX) implemented new rules for its watchlist board on Monday, Sept. 28, 2026. The revisions shift the exchange's risk-monitoring focus toward company fundamentals and away from share price levels or the volume of freely trading shares. Iding Pardi, a director at the exchange, stated that these refinements are intended to improve price discovery—the process by which market prices are determined—while maintaining criteria related to the underlying health of listed firms.
This policy change follows concerns raised by global index providers earlier this year regarding market transparency in Indonesia. According to the exchange, those concerns provoked a sharp selloff by investors. In response, the country has been undergoing a series of reforms aimed at improving liquidity, which refers to how easily assets can be bought or sold without affecting their price.
Under the new rules, the IDX has removed criteria triggered by share prices and liquidity levels. This follows the removal of the 50 rupiah ($0.0028) minimum share price, which also took effect on Monday. Additionally, the exchange is phasing in a requirement that at least 15% of a company’s shares be held by public investors, known as a free-float requirement. The exchange will continue to flag companies based on financial performance and legal status, such as revenue generation, bankruptcy filings, or debt restructuring.
The scale of this impact is tied to Indonesia's status in global emerging market indices. Index provider MSCI is currently reviewing these reforms to determine if they sufficiently address prior concerns about trading conditions. Because many large investment funds track MSCI benchmarks, the outcome of their review can result in funds adjusting their holdings to match the index. For an individual holding Indonesian stocks, this could manifest as increased price volatility or changes in the ease of selling shares depending on the review's outcome.
The precedent set by these rules aligns the Indonesian market more closely with international standards for price discovery and transparency. The removal of blunt trading thresholds suggests a shift toward oversight based on a company's business health rather than technical trading metrics. The next major milestone for the market is the conclusion of the MSCI review, which is expected to be delivered in November 2026. This follows a previous decision by the index provider to extend its assessment period to monitor the implementation of these reforms.