Trading Hours and Mechanism

Equities Trading Mechanism

All transactions in the Exchange are processed in a facility called as JATS INET. Only the Exchange Members, who also become the members of the Indonesian Clearing and Guarantee Corporation (KPEI), can input the orders into the JATS. The Exchange Members are responsible for every transaction they make in the Exchange.

Trading Process in The Exchange

Transaction

Market Segmentation and Settlement

Pre-Emptive Rights are traded only on the first session of the Cash and Negotiated Market.

Pre-Opening Session

Stock trading at the Regular Market starts with a Pre-opening session. This session allows Exchange Members to input their purchase and sell orders according to the provisions of the stock unit, step value and Auto Rejection limit. The Pre-opening price is formed from the accumulation of the total highest bids and asks matched by the JATS INET during the Pre-opening session. All bids and asks that have not been matched during the pre-opening session will be processed in the first session of the trading day, except if the price of the bids and asks has excel the Auto Rejection limit.

Pre-Closing and Post-Trading

At Pre-Closing Session, The Exchange Members may enter sell offers and/or buy requests by following the provisions about trading unit, price fluctuation unit (price fraction), and auto rejection. JATS forms the Closing Price and matches sell offers with buy requests at the Closing Price based on price and time priority.

In the Post-Trading, Exchange Members enter sell offers and/or buy requests at the Closing Price, and JATS continuously matches sell offers with buy requests, fully or partially, at the Closing Price based on time priority.

Regular Market and Cash Market

Bids and Asks will be processed by JATS INET by considering:

• Price Priority: Higher bids have more priority than lower bids. On the contrary, lower asks have more priority than higher asks.
• Time Priority: If the bids and asks are on the same price, JATS will give priority to the first submitted bids and asks.

Reduction on the number of purchase or sell order processed into the JATS will not cause time priority lose.

Negotiated Market

In Negotiated Market, prices of each security are bargained out between:

• Exchange Members
• Investor and one Exchange Member
• Investor and Exchange Members

The results of the negotiation will be processed through the JATS INET. The Exchange Members can submit their bids and asks through the ad board, and they can change or cancel them before they are matched with other bids and asks in the JATS INET. Once they are matched, a transaction is made and will be carried out.

Trading Unit

Stock Trading at Regular and Cash Market must be traded according to stock unit, that is round lot, which 1 lot = 100 shares. Detail information regarding the Price Fraction can be found in the IDX Regulation number II-A Kep-00196/BEI/12-2024.

Stock step value and its maximum price step are valid for one entire trading day and will be adjusted on the next day if its closing price falls on a different price range. The maximum price step should not exceed the percentage of Auto Rejection limit.

Leveraged Transactions

1. MARGIN TRANSACTION

Margin is a securities order buy transaction financed by a Securities Company. Margin transactions can only be conducted on securities that meet the requirements set by the Exchange.

To be included in the list of Securities eligible for Margin Transactions, the Securities must meet the following requirements:

During the review period, marginable stocks were listed at:

1. Main Board;
2. Main New Economy Board; or
3. Development Board or Acceleration Board following with provisions :
   • Minimum 300 number of shareholders have Single Investor Identification (SID).
   • Minumum 50.000.000 shares on free float and at least 7,5% from listed shares.
   • Is not in net loss or negative equity condition based on Submitted latest financial statement.
   • Fulfil these condition:
     • PER Ratio is not 5 times more than PER Market and Positive PER;
     • PBV Ratio is not 5 times more than PBV Market dan Positive PER; or
     • PBV Value is not 5 times more than PBV Market and positive retained earning.

Margin stocks can be traded on the following markets:

• Reguler
• Cash
• Negotiation

*Exception: Not part of Syariah Listed Company.

Margin Transaction Illustration

The potential profit is gets from short shell transaction value minus the buy back transaction value, with the details as follows:

1. Selling price and buy back price deviation: Rp24.000.000 – Rp20.000.000 = Rp4.000.000
2. Securities Borrows fee for 20 Days: 30/360 x 15% X Rp10.000.000 = (Rp125.000)
3. Selling Fee(0.1433%) : 0.1433% x Rp24.000.000 = (Rp34.392)
4. Buying Fee(0.0433%): 0.0433% x Rp20.000.000 = (Rp8.660)
5. Nett Profit: (Rp4.000.000 – Rp125.000 – Rp34.392 – Rp8660) = Rp3.831.948

*in this illustration, we assume that borrowing securities within 30 Days with 15% p.a. interest rates.

2. SHORT SELLING TRANSACTION

Short Selling is a trading mechanism to sell security when investor doesn’t have the security while trading.

Before start Short Selling, Investor must understand the rights and obligations related to Short Selling Transactions, have opened a short selling securities account and have signed a securities borrowing and lending agreement with a Securities Company.

Short Selling Transactions may only be carried out for Securities that are listed in the Short Selling Securities List, and the position settlement may take place on a different Exchange Day.

To be included in the Short Selling Securities List, the Securities must meet the following requirements:

Others provision on list of Securities of Margin and/or Short Selling:

• IDX has the authority to impose additional criteria within the approval of the Financial Service Authority (OJK).
• IDX has the authority to set others strict polices based on established criteria by considering market conditions and trading activities conducted by exchange members
• The Exchange determines the list of Margin and Short Selling securities and announces it to the public and report to Financial Services Authority no later than two trading days each month.
  
  

Short Selling Transaction Illustration

The potential profit is gets from short shell transaction value minus the buy back transaction value, with the details as follows:

1. Selling price and buy back price deviation : Rp1.000.000 – Rp900.000 = Rp100.000
2. Securities Borrows fee for 20 Days : 20/360 x 15% X Rp1.000.000 = (Rp8.333)
3. Selling Fee(0.1433%)                : 0.1433% x Rp1.000.000 = (Rp1.433)
4. Buying Fee(0.0433%)                : 0.0433% x Rp900.000 = (Rp390)
5. Nett Profit : (Rp100.000 – Rp8.333 – Rp1.433 – Rp390) = Rp89.844
   ((Rp89.844/Rp1.000.000)x100) = 8,98% higher than short shell value

*in this illustration, we assume that borrowing securities within 20 Days with 15% p.a. interest rates

Disclaimer: Investors can only enter the selling price for Short Selling/Intraday Short Selling transactions at a minimum of the Last Done Price/Matched price in the trading session (at tick).

Intraday Short Selling

Intraday short selling is a short selling transaction where the settle position is on the same trading day (net off at the end of the trading day), where regular short selling allows the position to be settle on different trading days that require securities lending and borrowing activities.

Intraday Short Selling Transaction Illustration

The potential profit is gets from short shell transaction value minus the buy back transaction value, with the details as follows:

1. Selling price and buy back price deviation: Rp1.000.000 – Rp900.000 = 000
2. Selling Fee(0.1433%): 0.1433% x Rp1.000.000 = (Rp1.433)
3. Buying Fee(0.0433%): 0.0433% x Rp900.000 = (Rp390)
4. Nett Profit: (Rp100.000 – Rp1.433 – Rp390) = Rp98.177
   ((Rp98.177/Rp1.000.000)x100) = 9,81% higher than Short Sell value

Using the Intraday Short Selling (IDSS) mechanism, the potential profit earned by the investor in the illustration is 0.83% greater compared to the regular Short Selling scenario.

Disclaimer:

1. Investors can only enter the selling price for Short Selling/Intraday Short Selling transactions at a minimum of the Last Done Price/Matched price in the trading session (at tick).
2. Short Selling has the potential to generate greater profits than IDSS if market conditions cause the price of the transacted stock to continue declining over time., IDSS only captures the price decline exposure on the day the transaction is executed.

The Difference Between Short Selling dan Intraday Short Selling

Settlement (T+2) and Lending and Borrowing

Since the settlement of a short selling financing position can be conducted on a different day than the transaction itself, securities borrowing and lending (SBL) is required at the T+2 settlement date. In contrast, for Intraday Short Selling, where the position must be closed on the same day, SBL is not required at the T+2 settlement.

The financing settlement of a Short Selling Transaction can be fulfilled using:

1. The investor’s own portfolio
2. Securities borrowed from:
   • The Clearing and Guarantee Institution;
   • The Securities Financing Institution;
   • Another Securities Company;
   • A Custodian Bank; and/or
   • Other parties.

Below this is the illustration short selling and vs intraday short selling transaction settlement:

Short Selling and/or Intraday Short Selling Transaction Tips:

1. Open short selling account on Exchange Members that have short selling license.
2. Minimum Initial Guarantee IDR50.000.000 or as determined by the exchange member.
3. Trading analysis on short sell stock.
4. Short shell price is same as last done price (at tick) or higher than at tick.
5. Buyback at same trading days for intraday short selling.
6. Periodically monitoring of the short selling transaction ratio, and ensure compliance with all obligations (e.g., transaction ratio limits, short selling margin top-ups, etc.).

Risks and Benefits of Short Selling

TRADING PROVISIONS OF MARGIN AND SHORT SELLING SECURITIES

On Margin and/or Short Selling Securities transactions, Exchange members must fulfil the following conditions:

Auto Rejection

The buying and selling price inputted into the JATS must be within a certain price range. If an Exchange Member inputs a price order above or below the stock's price range, the JATS will automatically reject the order.

Based on Decree of the Board of Director of PT Bursa Efek Indonesia Number II-A Kep-00196/BEI/12-2024 regarding Rule Number II-A concerning the Trading of Equity Securities, the percentage limit of auto rejection in the Regular and Cash Market  effective as of Tuesday, April 8^th, 2025, as follows:

The implementation of Auto Rejection for Stock trading resulting from an initial public offering will be determined at 1 (one) times of the limit of auto rejection percentage as mentioned above.