JAKARTA — In a significant move to bolster market integrity, the Indonesia Stock Exchange (IDX) has implemented a new trading rule aimed at curbing price manipulation and increasing transparency for all investors. The “Non-Cancellation Period,” which began this week, represents a direct effort to clean up trading practices and foster a fairer investment environment.
The rule specifically prohibits investors from canceling existing buy or sell orders during two critical daily windows: the 30-minute Pre-Opening Session (9:00-9:30 AM) and the 20-minute Pre-Closing Session (3:40-4:00 PM).
While new orders can still be placed during these times, the inability to retract existing ones is designed to prevent a deceptive practice known as “spoofing,” where large fake orders are placed to artificially influence a stock’s perceived price and then canceled before execution.
“We are not using the terminology of ‘fried stocks’ (saham gorengan),” clarified Jeffrey Hendrik, Director of Development at the IDX, in a statement to reporters. “But from our analysis, this can certainly dampen efforts by certain parties to manipulate price formation during the pre-opening.”
Initial data suggests the market is responding positively to the increased certainty. On the first day of implementation, December 15, trading value in the pre-opening session surged to IDR 450 billion (approximately USD 28 million) with 67,000 transactions. This represents a 35% increase in value and a 48% jump in transaction frequency compared to the previous week’s averages, indicating enhanced investor participation and confidence in the price discovery process.
Why This Matters for Bali’s International Community
For global investors, expatriates, and business professionals with interests in Indonesia’s economy, this regulatory tightening is a critical development. It signals a maturation of the country’s financial markets and a commitment to international standards of governance.
A transparent and well-regulated stock market reduces hidden risks for foreign direct investment (FDI), which forms the backbone of large-scale projects in sectors like tourism, real estate, and infrastructure—all vital to Bali’s economy.
“The response from investors we have captured internally has been quite positive for the implementation of the Non-Cancellation Period,” Jeffrey Hendrik noted, emphasizing that the rule is designed to enhance the “quality, transparency, and integrity of price formation.”
The rule is part of the broader implementation of IDX Regulation Number II-A on Equity Securities Trading, which came into effect in April 2025. For the international community, it serves as a tangible example of Indonesian authorities proactively de-risking the financial landscape, making strategic, long-term investment in the archipelago—whether in a Jakarta-listed company or a Bali-based enterprise—a more secure and predictable proposition.
Hey Bali News delivers clear, contextual reporting on national economic and regulatory developments that impact the investment and business landscape for Bali’s international community.
