POSSIBLE COORDINATED TRADING TRIGGERS INVESTIGATION
The exchange also plans to launch investigations when it detects possible coordinated trading to manipulate share prices and freeze suspicious investor accounts, Hendrik said.
The new measure, to take effect in November, is more proactive than the IDX’s previous response. The IDX previously warned public investors of unusual market activities when a stock price moved sharply and requested an explanation from the company. The process could also lead to a temporary freeze in share trading.
A policy that allows share buybacks without requiring approval from a general shareholders’ meeting has also been extended until June 2027, Hasan said, adding that any buyback must consider rules about the minimum free float, or shares available to trade in the market.
Hasan said Indonesia has been communicating with MSCI and other global index providers like FTSE Russell to reiterate its regulators’ commitment to market reforms.
The market showed resilience following MSCI’s recent announcement, Hasan said, describing local investors as “mature” and “wise” for buying stocks in companies with good fundamentals.
President Prabowo Subianto told his cabinet last week that MSCI was trying to “intimidate” Indonesia, but said the country would not be afraid, striking a combative tone in his first public reaction to the downgrade warning.
Since MSCI’s January warning, Indonesia has launched a series of reforms including releasing more details on investor accounts and ownership data, increasing the minimum free-float level and unveiling record fines against parties involved in market manipulation.
