Indonesia scraps the price floor that froze 111 of its own stocks
By Ben Aris in Berlin Indonesia is abolishing the rule that let a listed company's shares stop trading altogether, after MSCI threatened to demote the market to frontier status. The Indonesia Stock ...
Source: RSS · August 24, 2026 at 2:01 AM · AI-assisted report
Single-sourceJAKARTA, 24 AUGUST 2026 —
Indonesia Scraps Price Floor That Froze 111 Stocks After MSCI Warning
Market Impact
By Bloomberg
JAKARTA, Aug 22 (Reuters) - Indonesia will abolish a rule that allowed 111 listed companies to halt trading indefinitely, following pressure from MSCI Inc. to avoid a downgrade of the market to frontier status.
The decision, announced on Friday, removes a price floor mechanism that had frozen share trading for companies unable to meet minimum price thresholds. MSCI had warned that prolonged trading halts could lead to Indonesia’s exclusion from its emerging market indexes.
Malaysia Market Impact: Limited Direct Exposure
Details not yet available on how the move will affect Malaysian investors, who have minimal direct exposure to Indonesia’s equity market.
Regulatory Shift in Response to MSCI Concerns
The Indonesian Financial Services Authority (OJK) confirmed the scrapping of the rule, effective immediately. The price floor had been in place since 2020 to prevent excessive volatility but was criticized for distorting market liquidity. MSCI had flagged concerns in its June 2025 review, citing prolonged suspensions as a key risk.
Outlook: Improved Market Accessibility Expected
Indonesia’s move is seen as a step toward maintaining its emerging market status with MSCI. Analysts anticipate smoother trading conditions for affected stocks, though the full impact on market depth and investor confidence remains to be assessed. Further regulatory adjustments may follow to align with global standards.
Related: Bursa Malaysia