IDX Launches New Economy Board To Accommodate Volatile Tech Stocks

Introduction

The Indonesian government and Indonesia Stock Exchange (“IDX”) have long been eager for more players in the country's booming tech scene to go public. However, investor confidence has been undermined by a perceived lack of financial transparency among tech companies, while the overall performance of the IDX has been dragged down in recent months by the volatility of tech shares.

In an apparent attempt to address the adverse impact of such volatility on the bourse, the IDX has now created a New Economy Board (“NEB”), the details of which are set out in IDX Board of Directors' Resolution No. Kep-00083/BEI/11-2022 (“IDX Rule I-Y”)¹ and IDX Circular No. SE-00011/BEI/11-2022 (“IDX SE-00011”)² (collectively, the “Regulations”, both issued on 30 November 2022). While the Regulations do not specifically say so, it seems that IDX will instruct the transfer of a stock from the Main Board to the NEB. Thus, it would appear not to be a voluntary process.