March 18, 2025 | 05:13 pm

TEMPO.CO, Jakarta - The Composite Stock Price Index (IHSG) plummeted at the end of the first trading session on Tuesday, March 18, 2025. The Indonesia Stock Exchange (IDX) implemented a 30-minute trading halt after the index fell more than 5 percent, before closing at 6,076, down 6.11 percent.
The trading halt is divided into three stages. First, a temporary halt of 30 minutes when the IHSG drops by 5 percent.
Second, the trading halt is prolonged to 30 minutes if the index declines by 10 percent. Lastly, if the drop reaches 15 percent, all trading activities will be suspended until the end of the session or beyond, pending approval or instructions from the Financial Services Authority (OJK).
The temporary halt of IHSG has actually been done several times in Indonesia. One of them was when the Indonesian economy was sluggish due to the onset of the Covid-19 pandemic in 2020.
Indonesia Stock Exchanhe Trading Halt During the Covid-19
According to Antara, before President Joko Widodo officially announced the presence of Covid-19 in Indonesia on March 20, 2020, the stock market had already shown signs of decline in early 2020. From its initial level of 6,300, the IHSG fell to 5,900 at the end of January and further dropped to 5,400 by the end of February.
In response to the news of Indonesian citizens (WNI) testing positive for Covid-19, the capital market experienced fluctuations. At that time, the IDX as the stock market policyholder immediately banned market players from engaging in short selling practices (short selling).
Short selling is the act of selling shares without owning the shares of the company first. The IDX hoped that when stock prices were weakening, with the absence of short selling, the market could be more stable.
In mid-March 2020, the IHSG plummeted by 6.58 percent. The IDX stated that this was the deepest daily decline in the past 8.5 years, where the IHSG corrected to a position of 18.46 percent year-to-date (ytd).
Then, the IDX decided to halt trading for 30 percent if the IHSG freefalls more than 5 percent, carries out asymmetric auto rejection or asymmetry between the upper auto rejection limit (ARA) and the lower auto rejection limit, as well as shortening the stock trading hours.
Meanwhile, the OJK responded by allowing all listed companies to conduct share buybacks without requiring a General Meeting of Shareholders. This measure aimed to stimulate the market and curb extreme fluctuations.
By the end of March 2020, the IHSG had dropped to 4,500 before rising to 4,700 in April and stabilizing in May. As June began, the index showed signs of recovery, approaching 5,000, driven by Indonesia’s economic rebound following the easing of Large-Scale Social Restrictions (PSBB) in mid-March.
In July 2020, stock trading hovered around 5,100, gradually climbing to 5,200 in August. However, the IHSG retreated to 4,900 in September after the government reinstated strict PSBB measures.
In the fourth quarter of 2020, the IHSG experienced an upward trend. In October, it rebounded to 5,100 before climbing to 5,600 in November. The index peaked at 6,100 on December 21, 2020, before slightly dipping to 6,000 by the year's end.
Aisha Shaidra contributed to the writing of this article.
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