Economy

Indonesia Stock Exchange Cuts ARB Floor to 7 Percent Effective Today

Stateline MEDIA Newsroom•October 19, 2026•3 min read

The IDX cut the stock ARB limit from 15% to 7% effective Monday (19/10/2026) through 31 December 2026, responding to the JCI's 11.57% plunge last Friday after MSCI's downgrade threat. ARA limits are unchanged; the OJK backs the rule.

Key Facts

The Indonesia Stock Exchange (IDX) cut the auto rejection lower limit (ARB) for stocks from 15% to 7% effective Monday (19/10/2026), applying to the Regular and Cash Markets.
The change was set through IDX Board of Directors Decree No. Kep-00157/BEI/10-2026 on Exchange Regulation No. II-A concerning Equity Securities Trading, replacing Decree No. Kep-00136/BEI/09-2026.
Stocks priced Rp11–Rp200: ARB 7% (upper auto rejection/ARA unchanged at 35%); above Rp200–Rp5,000: ARB 7% (ARA 25%); above Rp5,000: ARB 7% (ARA 20%); stocks at Rp1–Rp10 remain at Rp1 for both ARA and ARB. ARA limits are unchanged.
The rule is effective until 31 December 2026 and will be reviewed as market dynamics evolve.
The move follows the JCI's 11.57% plunge on Friday (16/10/2026) — the largest single-day drop in 28 years — after MSCI warned it may downgrade Indonesia from emerging market to standalone market status; the JCI became the world's worst-performing index this year.
IDX Corporate Secretary Elsierra Putri Yosita said the adjustment gives investors time to digest information and keeps trading orderly, fair, and efficient; the policy is supported by the OJK, decided after financial regulators met with market participants over the weekend.

Emergency Rule Takes Effect Today

Jakarta — The Indonesia Stock Exchange (IDX) cut the auto rejection lower limit (ARB) for stocks to 7 percent effective Monday (19/10/2026). The emergency measure replaces the previous 15 percent limit and applies to the Regular and Cash Markets.

The adjustment was set through IDX Board of Directors Decree No. Kep-00157/BEI/10-2026 on Exchange Regulation No. II-A concerning Equity Securities Trading, replacing Decree No. Kep-00136/BEI/09-2026. The rule runs until 31 December 2026 and will be reviewed as market dynamics evolve.

New Limits per Price Band

Under the new rule, stocks priced between Rp11 and Rp200 carry an ARB of 7 percent (previously 15 percent) with the upper auto rejection limit (ARA) unchanged at 35 percent. Stocks above Rp200 up to Rp5,000 get an ARB of 7 percent with ARA at 25 percent, while stocks above Rp5,000 carry an ARB of 7 percent with ARA steady at 20 percent. ARA limits are unchanged across all price bands.

Stocks priced Rp1 to Rp10 keep the ARA and ARB limits of Rp1. The tightening narrows the room for a stock's price to fall within a single trading day.

Response to the JCI Plunge

The move follows market turmoil late last week. On Friday (16/10/2026), the Jakarta Composite Index (JCI) plunged 11.57 percent — the largest single-day decline in 28 years — after MSCI said it was considering downgrading Indonesia from emerging market to standalone market status. The slide made the JCI the world's worst-performing index so far this year.

IDX Corporate Secretary Elsierra Putri Yosita said the adjustment gives investors time to evaluate information before making investment decisions and keeps trading orderly, fair, and efficient. The policy is backed by the OJK and was decided after financial regulators held weekend talks with market participants.