Indonesia Stock Exchange revises risk watchlist rules to focus on fundamentals
by@Reuters
Summary
On September 28, 2026, the Indonesia Stock Exchange (IDX) announced a shift in its watchlist board rules to prioritize company fundamentals over share prices and liquidity metrics. The new regulations, effective immediately, retain criteria related to a company's financial performance and legal status, focusing on aspects such as revenue generation and bankruptcy status. This update comes in conjunction with recent market reforms aimed at improving price discovery while phasing out the minimum share price requirement and implementing a minimum 15% free-float condition.
Analysis
Iding Pardi: Iding Pardi holds the position of director at the Indonesia Stock Exchange. He addressed the refinements to the watchlist board rules, explaining that they keep core fundamental criteria in place while modifying liquidity-related provisions. These updates took effect on the announcement date to support better price discovery. Indonesia Stock Exchange: The Indonesia Stock Exchange operates as Indonesia's primary securities marketplace, facilitating the listing and trading of company shares while enforcing market rules and oversight. It manages mechanisms such as the watchlist board to identify firms facing elevated risks. In the current development, the exchange has revised its watchlist criteria to prioritize assessments of company fundamentals including financial performance and legal matters. Market Reform: Recent adjustments to listing and trading rules at the Indonesia Stock Exchange are designed to enhance price discovery while retaining safeguards tied to fundamentals. Regulatory Focus: The Indonesia Stock Exchange has updated its watchlist board criteria to emphasize company financial performance and legal status over share price or liquidity metrics.
Categories
macropolitics