Trading Halted as IHSG Plunges 8%

TEMPO.CO, Jakarta - The Indonesia Stock Exchange temporarily halted trading on Tuesday, April 8, 2025, at 09.00 AM WIB (Western Indonesia Time). Trading was halted as the Composite Stock Price Index (IHSG) plunged by up to 8 percent.

The Stock Exchange will resume trading at 09.30 AM WIB. "This measure was taken because of the 8 percent fall in the Composite Stock Price Index (IHSG)," said BEI Corporate Secretary Kautsar Primadi Nurahmad in a written statement on Tuesday, April 8, 2025.

BEI referred to this step as an effort to ensure that stock trading remains orderly, fair, and efficient following Regulation Number II-A regarding Equity Securities Trading and further regulated in the Board of Directors' Decree of BEI number Kep-00002/BEI/04-2025.

Previously, the Indonesia Stock Exchange and the Financial Services Authority officially adjusted the implementation of the trading halt and the Lower Auto Rejection Percentage (ARB) limit.

"In order to ensure that stock trading runs orderly, fair, and efficiently," said Kautsar.

In detail, Kautsar said that this adjustment was made to the Board of Directors' Decree of the Stock Exchange number Kep-00196/BEI/12-2024 concerning Changes to Regulation II-A on Equity Securities Trading and the Board of Directors' Decree of the Stock Exchange number Kep-00024/BEI/03-2020 regarding Changes to the Guidance for Handling the Continuity of Trading in the Indonesia Stock Exchange in Emergency Conditions.

"The two decrees will be effective starting Tuesday, April 8, 2025," said Kautsar.

Kautsar said that the Lower Auto Rejection Percentage limit is now adjusted to 15 percent for securities in the form of stocks on the Main Board, Development Board, and New Economic Board, then Exchange-Traded Funds (ETF), as well as Real Estate Investment Funds (DIRE) for all price ranges.

"Adjustments to the Lower Auto Rejection Percentage are made to maintain market volatility and ensure investor protection," said Kautsar.

Meanwhile, Kautsar mentioned at least three adjustments for the trading halt. When the IHSG experiences a decline on the same Exchange day, the Exchange will act as follows.

1. Trading halt for 30 minutes if the IHSG falls by over 8 percent.
2. Trading halt for 30 minutes if the IHSG falls continuously by over 15 percent.
3. Trading suspension if the IHSG falls continuously by over 20 percent, with the provisions until the end of the trading session or more than one trading session after obtaining the approval or order from the OJK.

Kautsar mentioned that BEI's adjustment of the trading halt is an effort to provide ample liquidation space for investors to determine investment strategies using the available information. He said BEI has considered best practices in world exchanges and input from market participants.

"In implementing this policy, BEI has also considered best practices in world exchanges and considered input from market participants," said Kautsar.

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