The Indonesia Stock Exchange (IDX) experienced a significant decline after removing the 50 rupiah (0.3 cents) minimum share price on Monday, which was the first trading day without this price floor. The IDX composite index dropped by 94.03 points, or 1.51% [1]. This policy change led to sharp declines in several stocks, notably including technology company GoTo Gojek Tokopedia [1].
More than 40 stocks on the IDX composite index, which includes approximately 900 listed companies, traded at or below 50 rupiah following the removal of the price floor [1]. While the change has resulted in improved liquidity, it has also placed downward pressure on the share prices of some major companies [1].
The market reaction indicates heightened volatility and negative sentiment, particularly for companies whose shares were previously supported by the price floor [1].
CONCLUSION
The removal of the 50 rupiah price floor on the Indonesia Stock Exchange has led to a notable market decline and increased volatility, with GoTo Gojek Tokopedia among the affected stocks. While liquidity has improved, the immediate impact has been negative for share prices of several major companies.