The Indonesia Stock Exchange (IDX) temporarily halted trading on Tuesday, March 18, 2025, at 11:19:31 Jakarta time after the IHSG fell 5 percent.
This trading halt was triggered by a sharp decline in two major stocks, namely PT DCI Indonesia (DCII) and PT Barito Renewables Energy (BREN), which were both hit by a lower auto rejection (ARB) of 20 percent.
Capital market analyst Yanuar Rizky said that the price of DCII shares previously skyrocketed to Rp205,000 through marking the close strategy or price formation through one large transaction in the closing session. However, today, the shares owned by the Salim Group immediately touched the ARB limit, causing major pressure on the market.
"The price was raised to Rp205,000, which eventually got a maximum correction of 20 percent. This caused DCII and BREN to get ARB and triggered a circuit breaker in the JCI," Yanuar spoke to Indonesia Business Post, on Tuesday, March 18, 2025.
According to him, the fall of these two large-cap stocks affected the JCI as a whole. Yanuar also asked the Financial Services Authority (OJK) to investigate the transaction patterns in DCII and BREN, because these extreme fluctuations created chaos in the capital market.
Stock manipulation
Yanuar highlighted that the DCII price movement pattern should have raised a warning in the stock exchange supervision system (IDX), especially in the short selling scheme with the T+3 (three days of the trade)mechanism.
According to Yanuar, in principle, auto halting should not prevent a decline without sufficient reason regarding market manipulation or insider trading carried out in day trading short (T+O), intra day short (T+3 and T+5)
"Can OJK act like the U.S. Securities and Exchange Commission (while investigating the Wall Street crash in 2008) in handling cases like this? Let's just wait," he said.
Meanwhile, trading on the IDX reopened at 11:49:31 without any changes to the trading schedule. However, market conditions remain volatile amidst less conducive economic issues, including the fiscal deficit and pressure from foreign hedge funds that can take advantage of this situation for their own interests.
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