Why the IDX Is Reviving Short Selling
In the initial stage, five stocks from the LQ45 index are available for short selling.
Indonesia Stock Exchange (IDX) is reintroducing short selling transactions, as announced by the Financial Services Authority (OJK). The move comes after a delay from the original September 17, 2025, date and a resumption on March 13, 2026. Short selling involves borrowing stocks, selling them at a high price, and repurchasing them when the price falls, aiming to profit from the price difference.
IDX Director of Development, Inding Pardi, revealed the reintroduction is partly due to limited short-selling notes from Morgan Stanley Capital International (MSCI) and the relatively stable market in Indonesia. He emphasized the importance of short selling for hedging and risk management strategies, but warned of speculative risks.
IDX will initially allow short selling for five liquid stocks from the LQ45 index, including a banking sector company, to prevent manipulation and price fluctuations.
Written by urgent.news from Tempo.co English's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
