IHSG Has Potential Suspension If It Continues To Be Sharp

Illustration. (Photo: IDX)

JAKARTA - The Composite Stock Price Index (IHSG) has fallen sharply in recent days. Even today at the close of the first session of Friday, February 28, the JCI position has fallen by 4.04 percent to the level of 5,311.96.

The JCI fell along with investor concerns about the case of the corona virus (COVID-19) which reportedly got worse. This is believed to have an impact on the global economy, after the emergence of a statement from the world health organization (WHO), that the corona virus outbreak became a global emergency.

As a result, the global stock market has also declined sharply, including the domestic capital market. If the JCI decline deepens, it is not impossible that the JCI will be stopped trading by the authorities.

The Director of PT Anugerah Mega Investama, Hans Kwee, said that the termination of stock trading in the capital market could happen, because there are rules, if the JCI drops or touches a certain level.

"It might happen, there are rules. And we have to respect the efforts of the regulators. Because there are already rules," said Hans Kwee, in Jakarta, Friday, February 28.

As is well known, the Indonesia Stock Exchange (IDX) has the right to stop trading on the stock if it meets certain criteria. One of them is if there is a condition where the JCI is experiencing deep correction.

Based on the Decree of the IDX Board of Directors Number Kep-00366 / BEI / 05-2012, it is stated that if the index is down more than 10 percent, the IDX has the right to impose a temporary freeze on trading (trading halt) for 30 minutes intraday.

However, after 30 minutes the index continues to fall back to more than 15 percent, the exchange has the right to enforce all trades (trading suspend) until the end of the trading session, or more than one session with the approval of the Financial Services Authority (OJK).