Indonesia's stock exchange cuts lower price limit for some stocks amid selloff
The Indonesia Stock Exchange lowered its auto-rejection limit for some low-priced shares to curb volatility after MSCI threatened to drop the country from global indexes.
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what happened
The Indonesia Stock Exchange on Tuesday lowered the lower auto-rejection limit for stocks priced between 11 and 14 rupiah, from 7% to 1 rupiah. The move aims to calm a selloff that followed MSCI's proposal to downgrade Indonesia to "standalone" status. The exchange said the change should keep trading orderly, fair and efficient, and support better price discovery. The new policy runs from Tuesday until December 31 this year, while stocks at 15 rupiah and above keep the 7% downside limit.
why it matters
Source: Reuters. The step signals that the exchange is trying to limit panic in the market. MSCI's proposal to exclude Indonesia from its emerging and frontier market indexes could trigger passive capital outflows, so pressure on shares may persist even if sharp price drops become less likely.
market impact
Indonesian stocks: limits curb sharp drops, but the risk of an MSCI index exclusion keeps pressure on the market
instruments
sources
- Indonesia Stock Exchange cuts lower limit for more stocks to cool volatility — Reuters, 20 October 2026 at 01:30 UTC
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