21 Dec 2020
Indonesia Stock Exchange Revisits Equity Trading Rules

The Indonesia Stock Exchange (“IDX”) has amended its regulations on the trading of equity securities through IDX Board of Directors’ Resolution No. Kep-00108/BEI/2020, which was issued on 4 December 2020 (“Amended Rules”).

Below are the key changes introduced by the Amended Rules:

1. Trading hours

IDX trading hours have been revised as follows:

1. Regular Market

Monday to Thursday	Pre-opening session	08.45 – 08.59 Jakarta time - used by IDX members to input sale or purchase orders 08.59.01 – 08.59.59 Jakarta time: Jakarta Automated Trading System (“JATS”) determines the opening price and matches offers to sell with purchase requests at the opening price
	Session I	09.00 – 12.00 Jakarta time
	Session II	13.30 – 15.49.59 Jakarta time
	Pre-closing session	15.50 – 16.00 Jakarta time: used by IDX members to input sale or purchase orders, subject to condition that JATS may close at any time from 15.58.00 to 16.00.00 Jakarta time 16.00.01 – 16.00.59 Jakarta time: JATS determines the closing price and matches offers to sell with purchase requests at the closing price
Friday	Pre-opening session	08.45 – 08.59 Jakarta time: used by IDX members to input sale or purchase orders 08.59.01 – 08.59.59 Jakarta time: JATS determines the opening price and matches offers to sell offer with purchase requests at the opening price
	Session I	09.00 – 11.30 Jakarta time
	Session II	14.00 – 15.49.59 Jakarta time
	Pre-closing session	15.50 – 16.00 Jakarta time: used by IDX members to input sale or purchase orders, subject to condition that JATS may close at any time from 15.58.00 to 16.00.00 Jakarta time 16.00.01 – 16.00.59 Jakarta time: JATS determines the closing price and matches offers to sell with purchase requests at the closing price

2. Cash Market

Monday to Thursday	Session I	09.00 – 12.00 Jakarta time
Friday	Session I	09.00 – 11.30 Jakarta time

3. Negotiated Market

Monday to Thursday	Session I	09.00 – 12.00 Jakarta time: used by the IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcomes.
	Session II	13.30 – 16.30 Jakarta time - used by IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcome.
Friday	Session I	09.00 – 11.30 Jakarta time: used by IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcome.
	Session II	14.00 – 16.30 Jakarta time: used by the IDX members to input results of negotiation into JATS, and counterparty to confirm negotiated outcome.

The above new trading hours will enter into effect on 26 July 2021.

2. Auto Rejection

JATS will automatically reject price orders that are entered on the regular and cash markets if:

No.	Reference Price	Auto Rejection upper limit	Auto Rejection lower limit	Volume order limit
1.	Rp50 – Rp200	>35%	>35%	> 50,000 lot or 5% of stock's listed shares
2.	>Rp200 – Rp5,000	>25%	>25%
3.	> Rp5,000	>20%	>20%

The above provisions will not be implemented for the time being, with the timing of their introduction to be determined later. Until then, the previous rules on auto rejection remain in effect, as described below:

No.	Reference Price	Auto Rejection upper limit	Auto Rejection lower limit	Volume order limit
1.	Rp50 – Rp200	>35%	<Rp50 or <7%	> 50,000 lot or 5% of stock's listed shares
2.	>Rp200 – Rp5,000	>25%	<7%
3.	> Rp5,000	>20%	<7%

3. Indicative Equilibrium Price (IEP) and Indicative Equilibrium Volume (IEV)

Going ahead, JATS will display information on IEP and IEV during the pre-opening and pre-closing sessions. The Amended Rules define IEP as the indicated transaction price, calculated using the JATS price formation algorithm. IEV is defined as indicated transaction volume, using the JATS price formation algorithm. This is a new provision that will enter into effect on 26 July 2021.

4. Market Orders

The Amended Rules introduce a new alternative mechanism for traders’ orders. Previously, a trader (via a securities custodian/broker) could only submit a limit order where the order was limited by the number of shares and a price that had been determined by the trader. Under the Amended Rules, a trader may now submit an order to the custodian/broker based on transaction volume (market order). The market order mechanism will be available in the regular market (except during the pre-closing session) and the cash market starting from 26 July 2021

By partners Mr. Freddy Karyadi (fkaryadi@abnrlaw.com) and Ms. Rita Tyastuti Taufik (rtaufik@abnrlaw.com) and senior associate Mr. Novario Asca Hutagalung (nhutagalung@abnrlaw.com).

This ABNRNewsand its contents are intended solely to provide a general overview, for informational purposes, of selected recent developments in Indonesian law. They do not constitute legal advice and should not be relied upon as such. Accordingly, ABNR accepts no liability of any kind in respect of any statement, opinion, view, error, or omission that may be contained in this legal update. In all circumstances, you are strongly advised to consult a licensed Indonesian legal practitioner before taking any action that could adversely affect your rights and obligations under Indonesian law.