IDX New Rules: Could September 2026 Mark the Start of “Penny Stock Month”?

September 2026 could mark an important period for low-priced stocks on the Indonesia Stock Exchange (IDX). The exchange is preparing to lower the minimum share price in the Regular Market and Cash Market from Rp50 to Rp1, with implementation targeted for 7 September 2026. If implemented, stocks that have been constrained at the Rp50 floor will have a wider trading range, allowing prices to adjust more freely to market supply and demand.

This raises a key question: could September become a “penny stock month” in the Indonesian equity market? Penny stock is not an official IDX classification, but the term is commonly used to describe stocks trading at very low nominal prices. The broader price range could attract greater attention to these stocks, but it would also expose investors to risks that were previously limited by the Rp50 floor.

From Rp50 to Rp1: What Is Changing?

During a Focus Group Discussion (FGD) between the IDX, the Association of Indonesian Securities Companies (APEI), and the Indonesian Investment Managers Association (AMII) on August 19, 2026, the IDX proposed changes to several trading parameters in the Jakarta Automated Trading System (JATS). The main proposal is to lower the minimum share price from Rp50 to Rp1, accompanied by adjustments to the Lower Auto Rejection (ARA) and Lower Auto Rejection (ARB) limits.

Share Price Range	ARA	ARB
Rp1–Rp10	Rp1	Rp1
Rp11–Rp200	35%	15%
Rp201–Rp5.000	25%	15%
>Rp5.000	20%	15%

For stocks trading between Rp1 and Rp10, the daily movement limit would be based on a nominal Rp1 change rather than a percentage. As a result, even a small nominal move could translate into a significant percentage change. A stock rising from Rp2 to Rp3, for example, would gain only Rp1 in nominal terms but increase by 50%.

The IDX has scheduled a pre-live test on 5 September, with the system targeted to go live on 7 September 2026. Meanwhile, the amendments to IDX Regulation No. I-X concerning the Special Monitoring Board were still awaiting approval from the IDX Board of Commissioners.

Why Is the IDX Opening the Price Range Down to Rp1?

The primary objective of the proposed change is to improve price discovery. Under the existing Rp50 minimum, a stock that reaches this level cannot fall further in the Regular Market. As a result, Rp50 may not necessarily represent the true equilibrium price at which buying and selling interest meet.

The IDX also sees the potential for improved liquidity among stocks currently traded on the Special Monitoring Board that could become eligible to exit the board following adjustments to the minimum-price criteria. In addition, a broader trading range is expected to provide mutual funds with greater flexibility in portfolio rebalancing and portfolio management.

The proposal is also supported by the IDX’s benchmarking of international exchanges. Several global exchanges do not impose a direct trading floor price, although some continue to apply minimum share-price requirements as part of their listing standards.

Trading Activity on the IDX Could Increase

The potential impact on market activity is one of the key findings of the IDX’s assessment. Among stocks that traded at Rp50 or below at some point in 2026 through 11 August, the IDX identified 149 stocks, of which 109 had previously been or were still listed on the Special Monitoring Board.

The assessment also showed that 19 stocks that exited the Special Monitoring Board during 2026 recorded an approximately 334% increase in trading frequency, while their transaction value increased by around 230%. Based on this pattern, the IDX estimates that stocks moving from a call auction mechanism to continuous auction trading could see transaction frequency and value increase by approximately two to three times.

Overall, the IDX estimates potential activity among stocks trading near Rp50 at around 418,000 transactions and Rp654 billion in average daily trading value (RNTH). This suggests that the proposed mechanism could contribute to higher trading activity across the exchange. However, higher transaction activity does not automatically translate into a stronger Jakarta Composite Index (JCI, aka IHSG), as index performance continues to depend on share-price movements and the market-capitalisation weights of its constituents.

Will Low-Priced Stocks Attract Traders?

For stocks previously constrained at Rp50, opening the trading range down to Rp1 creates price levels that were previously unavailable. Sellers would be able to offer shares at lower prices, while buyers would have a wider range of entry points. This could help reactivate trading in stocks that previously experienced limited market activity.

At the same time, a Rp1 movement at very low prices can produce a substantial percentage change. This characteristic could attract traders seeking higher volatility. September could therefore become a period of heightened attention for low-priced stocks, although this does not mean that all such stocks will rise.

Price Discovery Also Creates Downside Risk

A wider trading range does not only create opportunities for greater liquidity; it also expands the scope for downward price adjustment. Stocks with weak fundamentals or limited buying interest could fall below Rp50 until they reach a new market-clearing price. In an extreme case, a decline from Rp50 to Rp1 would represent a 98% loss in value.

The risks become even more pronounced within the Rp1–Rp10 range, where a Rp1 change can translate into a significant percentage move. Stocks with thin liquidity and limited free float also warrant greater caution, as they may be more vulnerable to sharp volatility and speculative trading activity.

Investors should therefore distinguish between a low nominal share price and a cheap valuation. A stock trading at Rp5 is not necessarily fundamentally cheaper than one trading at Rp5,000. Valuation should still be assessed based on business performance, earnings, cash flow, debt, shares outstanding, and the company's longer-term prospects.

September: “Penny Stock Month” or the Start of a New Market Mechanism?

Lowering the minimum share price from Rp50 to Rp1 would represent more than simply allowing stocks to trade at lower nominal prices. The policy would change the way prices are formed for stocks that have historically been constrained by the minimum-price floor, while potentially increasing trading activity within this segment.

September could therefore become a more active period for low-priced stocks. However, the change should not be viewed as a catalyst that will automatically push penny stocks higher. On one hand, liquidity could improve; on the other, downside risk and volatility would also become more visible. For investors, this makes fundamental quality and disciplined risk management even more important.

What do you think, Sobat KAF? Will allowing stocks to trade as low as Rp1 improve market liquidity, or could it make low-priced stocks even more speculative?

Let’s discuss in the comments!

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Disclaimer: This content is created for educational purposes or service promotion, and does not constitute a recommendation to buy or sell any specific Securities. Any risks arising from investment decisions made based on the information in this publication are the sole responsibility of the respective audience. The data was sourced from various sources. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (Otoritas Jasa Keuangan / OJK).