The Indonesia Stock Exchange has cut the minimum tick size for its lowest-priced stocks from Rp50 to Rp1, effective 28 September, along with revised price rejection limits.

The change affects stocks trading at the bottom of the price range, where the old Rp50 floor had made small price moves impossible. The new Rp1 floor allows finer price discovery for penny stocks.

Market officials said the move is aimed at improving liquidity and trading activity in low-priced shares. Finer tick sizes can narrow bid-ask spreads and attract more investors to these counters.

The exchange also revised its auto-rejection rules, which limit how far a stock can move in a single session. The new framework is designed to keep trading orderly while allowing freer price movement.

Traders will watch how the change affects volumes in the coming sessions. Similar tick-size reforms in other Asian markets have generally boosted activity in lower-priced stocks.