GoTo Shares Drop 14% After Indonesia Removes Price Floor
Indonesia's stock exchange removed its 50 rupiah price floor, leading to a 14% drop in GoTo shares. The change aims to improve liquidity and price discovery.
Shares of GoTo, an Indonesia-based ride-hailing and food-delivery company, fell 14% in early Jakarta trading. The decline followed the Indonesia Stock Exchange's decision to remove the 50 rupiah (approximately US$0.0028) minimum price floor for the stock. This action released pent-up selling pressure after the shares had been trading at the minimum for about four months.
The exchange reduced the minimum trading price for listed stocks to 1 rupiah (US$0.0001) from the previous 50 rupiah. The reform is intended to enhance price discovery and liquidity for low-priced stocks that had become difficult to trade due to their inability to fall further.
This move is part of broader market reforms, prompted partly by MSCI's warnings regarding concerns about investability in Indonesia, specifically related to transparency and information flow. GoTo was previously removed from MSCI indexes last month for failing liquidity requirements, a situation that typically compels index-tracking funds to divest their holdings.
Analysts suggest the coming months will be crucial in determining whether the share price drop is purely technical or reflects underlying concerns about GoTo's fundamentals and valuation. This comes despite the company reporting its second consecutive quarterly profit in the second quarter of 2026.