Indonesia to scrap 50 rupiah minimum price for listed stocks

The Indonesia Stock Exchange is set to abolish the 50 rupiah minimum share price, according to the exchange's President Director Jeffrey Hendrik. The primary objective behind this decision is to enhance liquidity and enable prices to more accurately reflect the true market valuations of listed stocks. Hendrik revealed that the exchange has engaged in discussions with the Association of Indonesian Securities Companies and the Indonesian Investment Managers Association to gather input from key market participants.

They have also sought feedback from global investors regarding the proposed changes. However, no specific details have been disclosed about the exact timing of when the new rules will take effect. Hendrik emphasized that the exchange is currently in the process of collecting feedback from market participants and evaluating the preparedness of its trading systems before implementing the changes.