JAKARTA – The Indonesia Stock Exchange (BEI) has officially given the green light to two prominent securities firms, PT Semesta Indovest Sekuritas and PT Ajaib Sekuritas Asia, to facilitate short selling financing transactions. This significant development, announced by BEI Directors Irvan Susandy and Kristian S. Manullang, confirms that both companies have met all necessary requirements to operate as Exchange Members offering such financing, with an effective date set for August 25, 2025.
However, the actual implementation of these short selling transactions remains subject to strict regulatory compliance. Crucially, this includes adherence to the Financial Services Authority (OJK) letter S-25/D.04/2025, dated March 27, 2025, which outlines the current policy for postponing the implementation of short selling transaction financing. This postponement was further communicated by the BEI through its own announcement, Peng-00074/BEI.POP/04-2025, issued on April 24, 2025, along with any subsequent directives.
To clarify, a short selling transaction is precisely defined as the sale of securities that are not owned by the seller at the time the transaction is executed. This definition is laid out in Article 1, paragraph 6 of OJK Regulation Number 6 of 2024, which governs the financing of securities transactions by securities companies for clients, as well as short selling by securities companies.
It is important to note that short selling is not universally applicable to all securities in the Indonesian capital market. These transactions are exclusively permitted for stocks that the BEI explicitly designates as “short selling securities.” Such securities must meet specific criteria established by the BEI and be included in its official list of approved short selling securities. Furthermore, the BEI strictly prohibits any short selling transactions from being conducted in the negotiation market, ensuring a structured and regulated environment for these activities.
In line with the BEI Board of Directors Decree No. KEP-00160/BEI/10-2024, which amends Regulation No. III-I concerning Margin and/or Short Selling Membership, the financing of short selling transactions is exclusively granted to Exchange Members (AB) who possess a specific Adjusted Net Working Capital (MKBD). This regulatory framework ensures that only financially stable and compliant members can engage in such advanced trading activities within the equity market.
The decree further specifies the financial thresholds: Exchange Members with an MKBD of Rp250 billion or more are authorized to conduct short selling transactions on any designated short selling securities. Conversely, Exchange Members with an MKBD below Rp250 billion have a more restricted scope, permitted to engage in short selling only for securities that are both designated as short selling securities and listed within the prestigious LQ45 index. This tiered approach aims to manage risk and maintain market integrity effectively.
Regarding the overall short selling policy, Jeffrey Hendrik, the BEI Development Director, recently confirmed that the current postponement remains in effect. This directive from the OJK is valid until September 26, 2025. He emphasized the collaborative effort between the BEI and OJK, stating, “Of course, we will coordinate with OJK to continuously monitor market conditions to determine whether the postponement will be extended or not.” This ongoing assessment underscores the cautious and measured approach taken by Indonesian financial authorities in managing market dynamics and ensuring investor protection.
Summary
The Indonesia Stock Exchange (BEI) has officially approved PT Semesta Indovest Sekuritas and PT Ajaib Sekuritas Asia to facilitate short selling financing transactions, with an effective date of August 25, 2025. However, the actual implementation of these short selling transactions remains postponed by the Financial Services Authority (OJK) until September 26, 2025. This deferral is subject to ongoing monitoring of market conditions by both the BEI and OJK.
Short selling, defined as the sale of unowned securities, is exclusively permitted for specific stocks designated by the BEI and is prohibited in the negotiation market. Only Exchange Members with a minimum Adjusted Net Working Capital (MKBD) are authorized to engage in such financing. Members with an MKBD of Rp250 billion or more can trade any designated short selling securities, while those below Rp250 billion are limited to designated securities within the LQ45 index.