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Stock traders monitor the Jakarta Composite Index (JCI) on April 8, 2025, in South Tangerang, Banten. (AFP/Bay Ismoyo)
The Indonesia Stock Exchange’s (IDX) plan to lower the minimum share price from Rp 50 (less than 1 US cent) to Rp 1 could finally allow the market to discover the true value of stocks long trapped at the price floor. But greater price flexibility comes with greater risk. As distressed “zombie companies” are exposed to market forces and stocks worth only a few rupiah become tradable, the reform could improve liquidity and price discovery while also opening the door to greater volatility and speculation.On Aug. 20, the IDX unveiled its plan to remove the existing price floor for stocks traded on the exchange, allowing shares currently priced at Rp 50 to trade as low as Rp 1. The plan has undergone a series of tests, which IDX president director Jeffrey Hendrik said had been successfully conducted with the participation of most exchange members, with only eight yet to participate. Tests were conducted on Aug. 22 and 29 and received generally positive responses from exchange members.
The tests are part of broader efforts to reform the IDX in response to concerns raised by Morgan Stanley Capital International (MSCI) regarding ownership transparency and price formation in a report released in January 2026. The same report raised the possibility of Indonesia being downgraded from emerging-market status, which could have adverse economic consequences through capital outflows and pressure on the rupiah. The price-floor reform is also part of the IDX’s efforts to deepen the capital market and strengthen its role as a source of long-term financing.
