KONTAN.CO.ID - JAKARTA — The Indonesia Stock Exchange (IDX) has officially commenced the phased reintroduction of short selling transaction financing starting Tuesday (15/9/2026), marking a vital structural overhaul aimed at deepening market liquidity and strengthening institutional hedging frameworks.

The implementation follows a direct mandate from the Financial Services Authority (OJK) via official directive No. S-113/D.04/2026. Irvan Susandy, Director of Trading and Regulation, alongside Iding Pardi, Director of Development at the IDX, jointly verified that the multi-stage deployment will heavily prioritize infrastructure readiness, stringent risk mitigation, and automated market surveillance effectiveness.

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Overcoming Multi-Year Delays for Structural Market Reform

The return of short selling marks the end of extended regulatory pauses. The OJK had previously ordered the IDX to repeatedly freeze and postpone the roll-out, with notable suspensions enacted back in September 2025 and again in March 2026 due to regional macroeconomic macro volatility and currency pressures.

Under the newly activated regulatory framework, the bourse is slated to publish its official list of short-sale eligible equities on September 28, 2026. These specific securities will comply strictly with Exchange Regulation No. II-H, which governs the eligibility requirements, collateral margin parameters, and strict trade execution boundaries for short positions on the Jakarta Composite Index (IHSG).

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Execution Timelines for Global Quantitative Desks

"The bourse will publish the official list of short selling assets as regulated under section III.2 of Rule II-H on late September, with the trade parameters scheduled to go live and enter full operational effect in October 2026," management confirmed in a unified market statement.

For international hedge funds and global prime brokerage desks tracking Southeast Asian emerging markets, this infrastructure upgrade brings the IDX closer to global market standards. The ability to short-sell liquid big-cap equities provides institutional portfolios with an essential tool to manage capital downside during local market pullbacks, potentially curbing irrational retail panic sell-offs and balancing trade volumes across the local index over a multi-year holding horizon.

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