REPUBLIKA.CO.ID, NUSA DUA -- Indonesia Stock Exchange (IDX) will conduct a test of new lot size before it will be implemented to market on January 6, 2014. President Director of IDX, Ito Warsito said that it was a standard procedure for any new policy on IDX.

"IDX must conduct a test before it is implemented to capital market," Warsito said recently.

The test was carried out to determine the readiness of IDX members. They must know about the readiness of stock exchange infrastructure before it is implemented in beginning of next year. This test is usually conducted on weekend when there is no trade.

The new lot size will be consisted of 100 shares from the previous 500 shares each lot, aims to increase market liquidity and attract more retail investors. This is in line with Financial Services Authority (OJK) purposes to strengthen capital market through contribution of domestic investors.

Until now, Indonesia still relies on foreign investors. If there is negative sentiment in global markets, it will disrupt national capital market. Several developing countries, like India has implemented the purchase of shares per sheet, no longer per lot. Warsito said that Indonesia would be like India someday. Indonesia still needs more time of study to achieve the goal. 

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