Proprietary Short Selling by Brokers Deferred to January 2027 as Stock Exchange Extends Short Selling Restrictions

The Indonesia Stock Exchange (“IDX”) has issued Decree of the Board of Directors of BEI No. Kep-00135/BEI/09-2026 on Amendment to Provisions on Short Selling Transaction Restrictions (“Decree 135/2026”). The decree extends the period for applying the short selling restrictions in order to maintain orderly, fair and efficient trading.[1] It follows up on a letter from the Financial Services Authority (Otoritas Jasa Keuangan/OJK) dated 9 September 2026 on auto rejection limits, trading halt policy and short selling implementation, as well as on IDX's evaluation of the short selling restrictions introduced in October 2024.[2]