JAKARTA – Indonesia Stock Exchange (IDX) has implemented a temporary trading halt mechanism after Jakarta Composite Index (JCI) plunged by 9.17% as of 9.06 AM local time on Tuesday (8/4).

The trading halt will last for 30 minutes, as stated in the official IDX announcement.

The threshold for triggering a halt was recently loosened to 8% from the previous 5%, as the bourse seeks to “provide liquidity room for investors” and “maintain market volatility”.

If the JCI experiences a further drop of up to 15%, a second trading halt will be imposed for 15 minutes.

Finally, a full suspension of trading will be enforced if the index falls more than 20% by the end of the session or across more than one trading session, subject to approval or instruction from the Financial Services Authority (OJK).

“IDX has also taken into account best practices from global exchanges and considered feedback from market participants,” said IDX Corporate Secretary Kautsar Primadi Nurahmad in an official statement this morning. (KR/ZH)