In a recent regulatory development, the Indonesia Stock Exchange ("IDX") has introduced the Watchlist Board, aimed at enhancing transparency and investor protection in the country's capital market. Previously, companies exhibiting unusual market activities were placed on a Special Monitoring List without having a dedicated listing board. With the introduction of the Watchlist Board through the Board of Directors of the IDX Decree, these issuers are now formally recognised, allowing investors to easily identify companies with atypical market behaviours. The move reflects IDX's commitment to creating a more organised and investor-friendly market.
The criteria for companies to be included on the Watchlist Board are diverse, including low share prices, audited financial reports with disclaimer opinions, lack of revenue, negative equity, non-compliance with listing requirements, low liquidity, and more. Importantly, IDX has provided a structured process for the inclusion and removal of companies from the Watchlist Board based on their financial performance and compliance with specific conditions.
The establishment of the Watchlist Board is expected to rejuvenate investor interest in the Indonesian capital market, as it enhances transparency, aids in investor decision-making, and encourages companies to maintain the quality of their securities to avoid suspension. This regulatory change provides a proactive approach for listed companies to improve their performance and secure investor trust before their shares face potential trading suspension.
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