Sudden! Extend stock trading hours? Indonesian Stock Exchange's latest statement

Source: Securities Times

**Another Stock Exchange Considers Extending Trading Hours!**  

Recently, reports indicate that the Indonesia Stock Exchange (IDX) is considering extending trading hours to provide investors with greater flexibility and enhance market liquidity.  

Notably, other global exchanges have taken similar actions earlier this year. In March, it was reported that Nasdaq, the second-largest U.S. stock exchange, is exploring 24-hour trading services. In February, the Chicago Board Options Exchange (CBOE) announced plans to extend trading hours to 24 hours a day, five days a week.  

### **IDX Considers Extending Trading Hours**  

On May 26, *The Jakarta Globe* reported that the Indonesia Stock Exchange is evaluating the possibility of extending trading hours as part of efforts to boost market activity.  

IDX President Iman Rachman stated that the proposal to add a third trading session is still in its early stages and will involve consultations with market stakeholders. "This is one of the areas we are reviewing, and we will discuss it with market participants," he said.  

The proposed extension aims to offer investors more flexibility and improve liquidity without adding extra trading days. Rachman emphasized that the exchange will continue to follow the national calendar and Bank Indonesia’s working hours, despite concerns about the impact of holidays on trading volumes.  

"This year’s number of trading days is not significantly different from last year. Increasing trading value doesn’t always require more trading days," he added.  

Previously, IDX had already adjusted trading hours, extending the closing time from 3:00 p.m. to 4:00 p.m. Jakarta time. Rachman noted that any further adjustments must be strategic and based on a clear understanding of target markets. "If we decide to add another session, we need to know who our target clients are. We are still gathering feedback and evaluating," he said.  

### **Global Trends in Extended Trading Hours**  

In March, U.S. media reported that Nasdaq plans to introduce 24-hour trading for its stock exchange to meet growing global demand for U.S. equities. Nasdaq President Tal Cohen revealed that the exchange aims to offer round-the-clock trading five days a week, with a potential launch in the second half of 2026, pending regulatory approval and industry coordination.  

In a LinkedIn post, Cohen highlighted that retail investors' growing participation has transformed global investment trends. Rising wealth in major economies and lower market entry barriers have fueled demand for U.S. market access outside traditional hours. However, he acknowledged challenges in risk management, liquidity, and regulatory clearance.  

The move toward 24-hour trading has divided Wall Street. Supporters argue it allows investors to react quickly to market developments, while critics worry about lower trading volumes affecting price accuracy.  

In February, CBOE announced plans to extend trading hours to 24/5 (24 hours a day, five days a week) upon regulatory approval.  

In October 2023, the New York Stock Exchange (NYSE) proposed extending trading hours for its fully electronic NYSE Arca exchange to 22 hours per weekday, pending approval. The extended hours would run from 1:30 a.m. to 11:30 p.m. ET, covering all U.S.-listed stocks, ETFs, and closed-end funds.  

Similarly, in October 2023, the Tokyo Stock Exchange extended its trading day by 30 minutes, closing at 3:30 p.m. local time instead of 3:00 p.m., bringing total daily trading hours to 5.5 hours.  

### **Bank Indonesia Cuts Rates for the Second Time This Year**  

On May 21, Bank Indonesia (BI) lowered its benchmark interest rate by 25 basis points to 5.5%, marking its second rate cut this year after a similar reduction in January.  

BI Governor Perry Warjiyo stated that the move aligns with inflation expectations of 2.5% (±1%) for 2025–2026, supports the stability of the Indonesian rupiah, and fosters sustainable economic growth.  

To further stimulate the economy, BI will maintain accommodative macroprudential policies, encouraging banks to expand credit to businesses and households. It will also accelerate digital payment system development to promote financial inclusion and the digital economy.  

### **China and Indonesia Enhance Currency Cooperation**  

On May 25, the People’s Bank of China (PBOC) and Bank Indonesia signed a memorandum of understanding (MoU) to expand local currency settlement cooperation. The agreement extends the scope from current account and direct investment transactions to include capital and financial account transactions, facilitating greater use of local currencies in bilateral trade and investment.  

This builds upon a 2020 MoU and aims to strengthen financial market collaboration between the two countries.  

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