Indonesia Stock Exchange to remove Rp50 minimum stock price limit

The Indonesia Stock Exchange (BEI) plans to remove the minimum stock price limit of Rp50, potentially allowing shares to be traded as low as Rp1. This policy change aims to improve market liquidity and facilitate more efficient price discovery, particularly for stocks that have been stagnant at the Rp50 level.

Kiwoom Sekuritas Indonesia expressed optimism that the move could increase transaction frequency and liquidity in the retail segment. However, experts warn that while the change allows for better market mechanisms, it also introduces risks. For companies like PT GoTo Gojek Tokopedia Tbk. (GOTO), the new rule theoretically allows share prices to drop toward Rp1, though actual movement will depend on company fundamentals, market sentiment, and supply and demand.

In the short term, the implementation may trigger selling pressure and increased volatility, especially for stocks with outstanding financing obligations or forced sell requirements. In the long term, the policy is expected to contribute to more efficient price formation.