IDX Officially Revises Trading Halt Rule, IHSG Decline Threshold Raised to 8 Percent

The Indonesia Stock Exchange (IDX) has officially revised its policy regarding temporary suspension of stock trading (trading halt) by increasing the threshold for a decline in the Jakarta Composite Index (JCI) from 5% to 8%. The announcement was made by IDX Corporate Secretary, Kautsar Primadi Nurahmad, on Tuesday, April 8, 2025, as reported by Kontan.

Policy Change Details

According to a report from Bloomberg Technoz, the updated IDX policy now establishes two phases of trading suspension:

• 30-Minute Trading Halt: This will be imposed if the JCI drops by more than 8% in a single trading session.

• Additional 30-Minute Trading Halt: If the index continues to decline by more than 15% after trading resumes, an additional 30-minute halt will be implemented.

This regulation replaces the previous policy, which mandated a 30-minute halt when the JCI fell by 5%, with an additional 30-minute suspension if the drop reached 10%.

Background of the Policy Change

The decision to raise the trading halt threshold was made following a comprehensive evaluation of market dynamics and after considering input from various stakeholders, including the government. Coordinating Minister for Economic Affairs, Airlangga Hartarto, had previously proposed a review of the trading halt policy, citing Indonesia’s strong economic fundamentals, as reported by Kontan Investasi.

Objective of the Policy Adjustment

The policy adjustment aims to provide greater flexibility in managing market volatility while minimizing the risk of excessive trading suspensions caused by insignificant index movements. With a higher threshold, the market is expected to move more steadily and enhance investor confidence.

Historical Note on Trading Halts

It is worth noting that on March 18, 2025, the IDX implemented a 30-minute trading halt after the JCI corrected by 5.02% to 6,146.91. This was the first trading halt enforced since the end of 2020.

Through this policy adjustment, the IDX aims to maintain the stability of the national capital market and protect the interests of investors comprehensively.