Stock investment activities in the capital market do not always proceed in line with investor expectations. Under certain circumstances, trading of a stock may be temporarily halted by the competent authority through a mechanism known as a stock suspension. This mechanism often creates confusion and concern among investors because it directly affects transaction activities. For this reason, stock suspension is a critical issue that investors must understand in order to make rational decisions on whether to retain or divest their shares.
Understanding Stock Suspension
In essence, shares are investment instruments in the form of securities representing ownership in a limited liability company that has conducted a public offering. In Indonesia, stock trading is organized by the Indonesia Stock Exchange (Bursa Efek Indonesia – IDX), which acts as a Self-Regulatory Organization (SRO) under the supervision of the Financial Services Authority (Otoritas Jasa Keuangan – OJK). One of the IDX’s authorities in stock trading is to temporarily halt trading when it identifies irregular activities that may cause harm.
The IDX’s policy to temporarily halt the trading of an issuer in the capital market is referred to as a stock suspension. During this period, no buying or selling transactions take place until the exchange authority lifts the suspension status. The temporary halt imposed by the IDX is not permanent; it applies only for a certain period until the requirements or conditions underlying the suspension have been fulfilled.
As cited on the BRI Danareksa Sekuritas website, stock suspensions are generally caused by failure to submit mandatory financial reports within the prescribed deadline, unusual price or volume movements, legal issues or internal corporate constraints, corporate actions that deviate from established procedures, or suspected fraud.
From a capital market law perspective, the IDX’s action in implementing a stock suspension is consistent with the disclosure principle as stipulated in Article 1 point 25 of Law No. 8 of 1995 on Capital Markets (“Capital Market Law”), which requires issuers to provide all information relating to the issuer honestly, accurately, and in a timely manner to the public and the OJK.
As of early February 2026, the IDX identified 38 companies that had not fulfilled the public shareholding (free float) requirements. Of these 38 companies, 23 had been suspended by the IDX. Prior to imposing suspension sanctions, the IDX had first imposed administrative sanctions in the form of a third written warning and a fine of IDR 50 million. However, as these sanctions were not complied with, the IDX decided to impose further sanctions in the form of stock suspension.
The IDX’s decision to impose suspension sanctions on issuers that fail to comply with applicable rules and requirements constitutes a strategic measure to uphold the disclosure principle, maintain integrity and orderliness in capital market trading, and provide protection for investors against risks that may arise from issuers that do not meet established standards.
The Impact of Stock Suspension on Investors
The imposition of suspension sanctions by the IDX has significant implications for investors who have invested capital in the relevant issuer. The impact is not only financial, but also psychological. The effects of stock suspension on investors include the following:
First, loss of liquidity. When a stock is suspended, trading activities cease, resulting in a loss of liquidity because investors cannot liquidate or transfer their invested capital until the suspension status is lifted.
Second, potential disruption of investment strategy implementation. During the suspension period, investors cannot execute buy or sell transactions, preventing portfolio management plans from being carried out as intended. This condition may disrupt, delay, or even derail an investor’s portfolio rebalancing strategy.
Third, economic loss. Stock suspension is often perceived as an indication of problems within the company, such as financial, governance, or legal compliance issues. This perception may influence other investors’ decisions once the suspension is lifted, potentially causing a decline in stock prices due to increased selling activity.
Fourth, legal implications. Although investors are not held responsible for the issuer’s actions, the locking of shares places investors in a vulnerable position if violations occur in the future. This situation may exert psychological pressure due to the loss of opportunity to recover investment value and increase uncertainty regarding the issuer’s future.
Also read: Cross-Border Renewable Energy in ASEAN: Opportunities and Legal Strategies for Green Investment
What Should Investors Do If Their Stocks Are Suspended?
When shares owned by an investor are suspended, the primary step is to remain calm and rational. Investors should carefully review official announcements from the IDX and relevant authorities regarding the reasons for the suspension. Such information serves as the main basis for assessing whether the suspension is temporary due to technical or administrative issues, or whether it reflects serious fundamental problems, such as debt default. In addition, investors may monitor the issuer’s disclosure of information, particularly regarding future improvement plans or fulfillment of outstanding legal obligations.
The next step is to re-evaluate investment objectives, personal risk profile, and the company’s track record. If the suspended issuer still demonstrates strong business fundamentals and the suspension is temporary, investors may consider retaining their shares. However, if the suspension results from sensitive structural issues and indicates sustainability risks, investors should prepare risk mitigation strategies, including disposing of the shares through a securities company once trading resumes.
Furthermore, investors are advised not to make decisions based solely on speculation or rumors circulating outside official sources. Investors must ensure that all investment decisions are based on legitimate and accountable information.
Stock suspension serves as a market control mechanism aimed at protecting investors and ensuring orderliness in Indonesia’s capital market. Its existence may result in various impacts, including loss of liquidity, disruption of investment strategy implementation, economic loss, and legal implications. When facing such circumstances, investors should remain calm and rational in determining their next course of action, carefully review official information and announcements from the IDX and relevant authorities, and re-evaluate their investment objectives, risk profile, and the company’s track record. Through these measures, investors are expected to reach the most appropriate decision, whether to retain or divest their shares.***
Also read: Comparative Analysis of Cross-Border E-Commerce Regulations in Indonesia and China
Regulations:
- Undang-Undang Nomor 8 Tahun 1995 tentang Pasar Modal (“UU PM”)
References:
- Apa itu Suspend Saham? Penyebab, Dampak, dan Cara Menghadapinya. BRI Danareksa Sekuritas. (Diakses pada 6 Februari 2026 Pukul 13.12 WIB).
- BEI Suspensi 38 Emiten yang Tak Penuhi Ketentuan Free Float, Simak Rinciannya. Kompas. (Diakses pada 6 Februari 2026 Pukul 13.25 WIB).
- Saham Suspend: Definisi, Penyebab, Dampak, & Cara Mengatasi. Pegadaian. (Diakses pada 6 Februari 2026 Pukul 13.47 WIB).
- Saham Kena Suspensi? Ini yang Harus Kamu Lakukan. Emtrade Teknologi Finansial. (Diakses pada 6 Februari 2026 Pukul 14.11 WIB).