AmCham Update Vol. 7 #101

IDX Drops Minimum Price Floor to Rp 1, Jokowi is a PSI Member After All, Gov’t Targets 2027 Sweet Beverage Excise Tax, Parties in DPR Ponder Tighter Election Rules, BI Reduces Intervention in FX Spot Market

Sep 29, 2026

IDX Lowers Price Floor to Rp 1

In its latest attempt at reforming its procedures, the Indonesia Stock Exchange (IDX) moved the stock price floor from Rp 50 to just Rp 1 on Sep 28.

As a result, several low-priced stocks hit the lower auto-rejection limit (ARB) as traders reacted. GoTo Gojek Tokopedia fell 14 percent to Rp 43 at the open on Sep 28. It had been trading at Rp 50 since May.

Other stocks that fell 14 percent include property developer Lippo Karawaci, Repower Asia Indonesia and MNC Kapital.

IDX president director Jeffrey Hendrik said the market had "reacted positively" to the change but that it would take time for stocks to find their "fair value."

Still reeling from the threat of losing emerging market status from index provider MSCI, the IDX unveiled the plan last month, saying it was geared at “providing better liquidity access and price discovery.”

The Jakarta Composite Index was down 0.43 percent on Sep 29 to close at 6,121.70. The JCI has fallen more than 3 percent in the past week.

The exchange also made adjustments to its upper auto rejection (ARA) and ARB limits, which automatically reject buy or sell orders that cause a stock price to move beyond the thresholds set by the IDX.

"These refinements retain criteria related to fundamentals, while adjusting other %u2060provisions related to liquidity to improve price discovery," said Iding Pardi, a director at the exchange.

A minimum 15 percent free-float requirement %u2060is also being phased in. The previous free float of 7 percent had been singled out by MSCI as inadequate.

The transparency warning from MSCI came in January and sent the exchange reeling. The IDX remains the worst-performing stock market in Asia, having declined by over 25 percent this year.

Allowing stocks to trade as low as Rp 1 would enable “natural price discovery,” said stock market analyst and founder of Stocknow.id, Hendra Wardhana.

He expected that the overall impact on the IDX would likely be limited, because the index is heavily influenced by large-cap stocks, foreign inflows, exchange rates, interest rates and global sentiment.

MSCI is due to release a full market review in November that could either downgrade Indonesia to frontier market status, or leave it in the emerging markets category.

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Jokowi Back in the Game as PSI Member

Ending months of speculation, former President Joko Widodo has confirmed that he joined the Indonesian Solidarity Party (PSI) on Oct 14, 2025. The announcement brings into the open Widodo’s renewed involvement in politics.

Widodo displayed his PSI membership card during a party coordination meeting in Bandung on Sep 26. “I have been part of the PSI family since Oct. 14, 2025. It has been almost a year,” he said.

Widodo’s relationship with PSI has been widely discussed since he attended the party’s 2025 congress in Solo. His son Kaesang Pangarep is the party’s chairman. Widodo has appeared at several PSI events, including a national working meeting in Makassar in January where he called for grassroots consolidation ahead of the 2029 presidential election.

PSI’s Daily Chairman Ahmad Ali said Widodo is set to become chairman of the party’s Board of Trustees in November, during the party’s anniversary celebrations in Surabaya.

Widodo also weighed in on the debate over the parliamentary threshold for 2029, saying the final figure should be determined by the government, House of Representatives (DPR), and political parties.

PSI won 4.26 million votes in the 2024 legislative election, below the 4 percent parliamentary threshold, and therefore it has no seats in the DPR. The Constitutional Court has ruled that the threshold must be revised for 2029 and subsequent elections, with changes taking into account proportionality, party-system simplification and meaningful public participation.

PSI leaders have linked the former president’s membership to the party’s preparations for 2029. Deputy Chairman Endang Tirtana described his membership as a potential catalyst for the party.

Political analyst Adi Prayitno from UIN Syarif Hidayatullah Jakarta described Widodo’s move as a strategic effort to strengthen the party’s position.

“One by one, Jokowi is deploying his trump cards to boost PSI's electability,” he said. “He appears to have calculated that PSI has yet to surge, despite his frequent blusukan (impromptu visits) and his habit of attending the party's events – even without holding an official membership card.”

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Gov’t Targets 2027 Sweet Beverage Excise Tax

The government and the House of Representatives’ Budget Committee have included a planned excise tax on sugar-sweetened beverages in the 2027 Draft State Budget, although the Finance Ministry says the policy remains under review.

Budget Committee Chairman Said Abdullah said on Sep 24 that the government would target around Rp 1.6 trillion ($89 million) in revenue from the excise tax in 2027. The amount is included in the overall 2027 excise revenue target of Rp 237.21 trillion.

The levy is needed to support state revenue and maintain fiscal discipline as the government seeks to keep the budget deficit under control, according to Said. “If it is postponed again, state revenue alone will increase by almost Rp 400 trillion. Where will it come from? The commitment of the Budget Committee and the government is to maintain the deficit,” he said.

The plan to impose an excise on sweetened beverages has been discussed for years but repeatedly postponed. Acting Director General of Economic and Fiscal Strategy at the Finance Ministry Ferry Ardiyanto said the government had originally targeted Rp 7.6 trillion in revenue from the levy in 2026, but the policy was not implemented. The 2027 target has since been reduced to Rp 1.6 trillion.

Deputy Finance Minister Juda Agung said on Sep 24 that the government was still reviewing the policy and has not yet finalized implementation. The Finance Ministry is also considering the sugar, salt and fat content thresholds that would determine which products are subject to the levy.

Reactions to the plan have been mixed. Non-profit and civil rights organization FAKTA Indonesia has urged the government to proceed with the excise tax to discourage high sugar consumption among children, while the Indonesian Food and Beverage Association (GAPMMI) has called for caution, saying that a hasty rollout could hurt businesses.

“There will certainly be additional costs that will ultimately be passed on to consumers. That’s why we don’t want our consumers to face an even heavier burden,” said GAPMMI Chairman Adhi S. Lukman. He added that businesses would wait for the final tariff rates, product categories covered, and other technical regulations.

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Parties in DPR Ponder Tighter Election Rules

Indonesia’s major political parties, nearly all of them in the ruling coalition, are starting to discuss 2029 election rules that could make life harder for small and emerging parties.

Political parties in President Prabowo Subianto’s coalition have begun discussing possible changes to the electoral system, including a potential increase in the legislative threshold. Election observers warn that could narrow the space for alternative voices.

Gerindra Party secretary-general Sugiono said on Sep 23 that pro-government party leaders met while Subianto was in New Delhi attending the BRICS Summit last week.

The discussion focused on a set of proposed changes to the electoral system, including ways to make the voting process more “efficient and effective,” according to Sugiono.

The Constitutional Court ruled in 2025 that the 4 percent national vote threshold for political parties to secure seats in the DPR was inconsistent with electoral fairness and ordered policymakers to revise the threshold for the next elections. It also held that a requirement that a party hold 20 per cent of DPR seats or win 25 per cent of the vote in the previous legislative election in order to nominate a presidential candidate was too high.

A debate over the legislative threshold is also underway, with several politicians from the ruling coalition calling for a 5 percent legislative threshold.

The debate could impact several likely 2029 contenders who do not have major party backing. Including Vice-President Gibran Rakabuming Raka and 2024 presidential runner up Anies Baswedan.

Coordinating Infrastructure minister Agus Harimurti Yudhoyono heads the Democratic Party, which has DPR seats but he would still need a second faction under current rules, to run.

Critics say the parties must respect the January Constitutional Court ruling.

Bestari Barus, head of political affairs for PSI, said a faction requirement would go against the spirit of the ruling. He rejected the use of parliamentary factions as a yardstick for presidential nominations.

“Factions in Parliament are not legal entities that take part in elections. The election participants are political parties. And the Constitutional Court’s ruling clearly says there is a zero per cent threshold for nominations,” he said.

The possible increase in the legislative threshold also has drawn criticism from the Association for Elections and Democracy, with researcher Haykal calling it “a very significant step backward.”

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BI Reduces Intervention in FX Spot Market

Bank Indonesia has reduced its spot interventions in the foreign exchange market, because the tactic is too costly, Governor Destry Damayanti told a DPR %u2060hearing on Sep 28.

"We have significantly reduced costly interventions – these costly interventions are those conducted via the spot market, which now account for only about 30 percent of our total interventions," Destry said.

Destry said that currency interventions in the non-deliverable forwards market are better and reduce the need to tap foreign exchange reserves.

The central bank is expanding its use of Domestic Non-Deliverable Forwards (DNDF) and Non-Deliverable Forwards (NDF).

Unlike spot transactions, DNDF and NDF are foreign exchange derivatives that do not involve the direct delivery of US dollars when the contracts are settled. This allows BI to stabilize the exchange rate without relying on direct US dollar transactions to the same extent as spot intervention.

Destry said the expanded use of DNDF and NDF had proven more effective in helping maintain rupiah stability.

The rupiah has been under pressure due to investor concerns about fiscal risks. It has been Asia's worst-performing %u2060currency so far this year, declining by around 7 percent. On Sep 29, the rupiah was 17,972 to the US dollar, near the psychological 18,000 barrier.

Destry said the new policy will be revaluated for its effectiveness.

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Update is AmCham’s regular newsletter on developments related to investment, the economy, regulations and issues related to doing business in Indonesia. It comes out three times a week. It is edited by AmCham Managing Director Donna Priadi and written by the AmCham Staff.

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