Parameter of Securities and Quotation Obligations for Share Liquidity Providers under Directors’ Decree KEP-00029/BEI/02-2026

Introduction

On 26 February 2026, PT Indonesia Stock Exchange (“IDX”) issued Directors’ Decree Number Kep-00029/BEI/02-2026 on the Provisions on Parameters for Share Liquidity Provider Securities as well as Incentive Securities for Share Liquidity Providers and the Quotation Obligations of Share Liquidity Providers (“Decree 29/2026”), which took effect on that date. This regulation establishes parameters classifying shares into liquidity provider securities and incentive securities, and provides technical guidelines for the implementation of quotation activities.

The IDX issued this decree in response to the results of its continuous monitoring and evaluation of the effectiveness of the Liquidity Provider scheme. The IDX recognizes the high urgency of adjusting various parameters and obligations of liquidity providers to ensure alignment with current market conditions and the unique characteristics of each share.

 

Key Provisions

Parameters for Share Liquidity Provider Securities

Dictum One sets out the criteria for shares included in the list of Share Liquidity Provider Securities. Such shares must be listed on the Special Monitoring Board with low liquidity criteria, or must constitute shares outside the Special Monitoring Board that cumulatively satisfy several requirements. These cumulative requirements mandate that the share’s daily trading volume falls within the lowest 95th percentile, the trading frequency falls within the lowest 90th percentile, the market capitalization exceeds the 10th percentile, and the free float portion amounts to at least 2.5%.

Parameters for Incentive Securities for Share Liquidity Providers

Dictum Two regulates the requirements for shares classified as Incentive Securities for Share Liquidity Providers. Such shares must not originate from the list of Share Liquidity Provider Securities and must not be listed on the Special Monitoring Board. The Exchange targets shares with higher levels of activity, therefore requiring that the daily trading volume or frequency of these shares falls within the top 50th percentile. In addition, such incentive securities must maintain market capitalization above the 10th percentile and preserve a minimum free float portion of 2.5%.

Quotation Obligations and Exemption Mechanism

Dictum Six requires each Share Liquidity Provider to actively conduct quotations in the Regular Market with a minimum presence level of 50% throughout Session I and Session II. The Exchange imposes technical obligations, including a maximum bid-ask spread ranging from two to seven price fractions, as well as minimum quotation lot sizes and a daily transaction value target. Where a liquidity provider successfully achieves the stipulated minimum daily transaction value, Dictum Six letter e grants an incentive in the form of an exemption from quotation obligations for the remainder of the trading day.

 

Transitional Provisions

Dictum Seven provides a transitional period before the new quotation obligation scheme becomes effective on 1 September 2026. During the transition phase, the Exchange reduces the burden on Liquidity Providers by maintaining a 50% presence requirement, a maximum spread of five price fractions, and a minimum quotation size of at least 15 lots for both sell and buy orders. In addition, liquidity providers may obtain an earlier exemption from quotation obligations during the transition period if they record a daily transaction value of at least IDR 100,000,000.00 (one hundred million rupiah).

 

Closing

Decree 29/2026 aims to optimize the Liquidity Provider scheme by establishing new parameters that classify shares into the category of Share Liquidity Provider Securities for low-liquidity shares and the category of Incentive Securities for shares with higher trading activity. The Decree also provides technical guidelines requiring liquidity providers to maintain a minimum quotation presence of 50%, subject to specific spread limitations and minimum lot sizes, while offering flexibility in the form of exemption from quotation obligations upon achieving the minimum daily transaction value target. The IDX implements a transitional period until 1 September 2026 by applying lighter quotation requirements and providing a more accessible exemption mechanism through a minimum daily transaction value threshold of IDR 100,000,000.00.