The Indonesia Stock Exchange (IDX) categorizes stocks into several Listing Boards, aka stock trading boards. The goal is none other than to help market participants make the right investment decisions.
The group of stocks on each Listing Board has different criteria and risk levels. Therefore, the Listing Board is one of the references for managing investment risk.
Stocks on the Main Board and New Economy Board are often preferred by those looking to invest for the long term. For swing or day traders, the Development Board and Accelerated Board may be more suitable.
Meanwhile, stocks on the Watchlist Board are usually the appetite of aggressive investors (high risk profile) in implementing their investment strategies, including increasing the liquidity of certain stocks.
So, what are the exact characteristics of these boards?
1. Main Board
The Main Board contains stocks of large-scale issuers with good financial performance. Companies must have been operating for at least 3 years, have net tangible assets of at least Rp100 billion, and record a profit in the last 1 year.
The number of shares offered to the public is at least 300 million shares consisting of at least 20% of total equity (for equity value <Rp500 billion), 15% of total equity (for equity value Rp500 billion-2 trillion), or 10% (for equity value >Rp2 trillion).
Leading stocks (YTD) of the Main Board as of March 2024 include: BMRI, AMMN, BBCA, BBRI, and BBNI.
2. New Economy Board
This board is equivalent to the Main Board. Issuers on it prioritize the use of technology and the digital economy for product or service innovation so as to increase productivity, create social benefits, and achieve rapid revenue growth.
Share codes on the New Economy Board are given a special notation K (for Shares with Multiple Voting Rights / SHSM) or I (non-SHSM), for example GOTO-K, BUKA-I, and BELI-I.
3. Development Board
The Development Board contains stocks of medium-sized companies that are expected to grow with a projected operating profit in year 2 and net profit in year 6. To enter this board, issuers must meet one of the financial size options: net tangible assets >Rp5 billion, operating profit of >Rp1 billion and share capitalization value >Rp100 billion, or operating income >Rp40 billion and share capitalization value >Rp200 billion.
The number of shares offered to the public is at least 150 million shares consisting of at least 20% of total equity (for equity value <Rp500 billion), 15% of total equity (for equity value Rp500 billion-2 trillion), or 10% (for equity value >Rp2 trillion).
Leading stocks (YTD) of the Development Board as of March 2024 include: PANI, NICE, BBSI, TPIA, dan STTP.
4. Acceleration Board
The Accelerated Board contains shares of small or medium-sized issuers that are projected to make a profit in the 6th year. The classification of small and medium scale on this board is regulated in POJK Number 53/POJK.04/2017 where small-scale issuers have assets <Rp50 billion and medium-scale issuers have assets between Rp50 billion-Rp250 billion.
The number of shares offered to the public is at least 20% of the total shares. Shares on the Accelerated Board can be traded at below Rp50 per share.
Leading stocks (YTD) of the Acceleration Board as of March 2024 include: IBOS, MANG, EURO, MEJA, dan CHIP.
5. Watchlist Board
The Watchlist Board contains stocks whose issuers experience a number of fundamental and trading liquidity constraints according to IDX regulations (see Implementation of Watchlist Board Phase II press release). The stock can exit this board if the obstacles have been resolved.
Stocks on the Watchlist Board are given a special notation X and are traded by periodic call auction (trading mechanism with bid and ask quotations that match only at certain hours, the last price is then determined based on the largest trading volume).
Disclaimer: The content is made for educational purposes, not a recommendation to buy or sell a particular stock. PT KAF Sekuritas Indonesia is licensed and supervised by the Financial Services Authority (OJK).