Auto Rejection May Be Back to Normal

VIVAnews - The management of the Indonesian Stock Exchange (IDX) said that the implementation of auto rejection can now be carried out in phases as it was in normal situation. Today, the IDX auuthorities are still examining the mechanism.

"The auto rejection is modified to improve market confidence," said IDX President Director Erry Firmansyah on Monday, Jan 5.

Auto rejection is automatic rejection over share movement which exceeds the upper and lower limits.

According to him, the implementation of auto rejection should be reconsidered; for if the limit is already increased, it will not be cut.

Meanwhile, President Director of Merrill Lynch Indonesia Lily Widjaja said that it is important that the auto rejection limit is set to its initial status should market situation recover.

For the time being, the IDX authorities still apply price ceiling of 20 percent and price floor of 10 percent.

In Widjaja's opinion, auto rejection is a standard system. "That's the measure to prevent share prices from drastically increasing and decreasing," Widjaja said.  

According to Widjaja, market players have not put pressure on the IDX authorities to implement auto rejection.

Translated by: Bonardo Maulana Wahono