How much you can borrow against Indonesian shares is set by the loan-to-value (LTV) ratio — the proportion of your position's market value advanced as cash. There is no single headline LTV. It is driven by the liquidity, volatility, free float, and concentration of the specific IDX-listed counter, plus the size of your position and the structure you choose. A liquid LQ45 constituent supports a higher LTV than a thinly traded Development Board name; the only reliable figure is one issued after a principal has looked at your actual ticker.
Key takeaways
- Liquidity (ADTV). Deeper average daily trading value supports a higher advance.
- Volatility. A more volatile share calls for a more conservative LTV.
- Free float. A larger freely-traded float makes a position easier to value and realise.
- Concentration. The bigger your stake relative to float and daily volume, the more cautious the ratio.
- Tenor & structure. Longer tenors and the recourse profile both feed into the number.
Why there is no fixed LTV
It is tempting to ask for a single percentage, but a stock loan is priced to the collateral, not to a rate card. Two positions of identical value can support very different advances if one is a deeply liquid blue chip and the other a closely-held growth company. The lender's question is always the same: if it ever had to realise this collateral, how easily and at what price could it do so? The answer to that question — not the headline market value — is what governs the LTV.
The five drivers, in detail
| Driver | Supports a higher LTV | Pulls the LTV lower |
|---|---|---|
| Liquidity (ADTV) | Deep daily trading value; the market absorbs a sale | Thin turnover; a modest order moves the screen |
| Volatility | Stable, steadily-traded price | Sharp swings; a larger buffer is needed |
| Free float | Large float; reliable price and easier exit | Low float; concentrated risk |
| Concentration | Stake small relative to float and daily volume | Stake large relative to float and volume |
| Tenor & structure | Shorter tenor; full recourse | Longer tenor; non-recourse |
Liquidity — average daily trading value (ADTV)
The single most important input. ADTV measures how much of the share trades, in value, on a normal day. A counter that turns over a large value daily can absorb a sale without collapsing the price, which supports a higher LTV. A thinly traded line, where even a modest order moves the screen, supports far less.
Volatility
A share that swings sharply is riskier collateral. The more a price can move against the lender between margin checks, the larger the buffer it needs — and that buffer is taken out of your LTV. Stable, steadily-traded names hold their advance better than high-beta ones.
Free float
Free float is the proportion of shares genuinely available to trade, excluding locked-in strategic and founder holdings. A larger float means a more reliable market price and an easier exit if collateral ever has to be realised. A low float concentrates risk and pulls the LTV down.
Concentration
Your position is assessed not in isolation but against the stock's float and daily volume. A IDR 200 billion stake is a different proposition in a deep blue chip than in a small-cap where it represents weeks of trading volume. Founder- and family-sized positions are our core competence, but they are sized with care.
Tenor and structure
A longer tenor leaves more time for the price to move, which can temper the LTV. The recourse profile matters too: a non-recourse structure, where the lender can look only to the shares, is typically more conservative on LTV than a full-recourse one.
What you can do to support a higher advance
You cannot change a share's liquidity, but you can present the position well: a clean, unencumbered holding in a liquid counter, a realistic tenor, and clarity on your objective all help. Where a sector foreign-ownership limit applies, addressing it early avoids a late haircut. And sizing the loan to what you actually need — rather than the maximum theoretically available — usually produces a more durable facility with a lower chance of a margin call.
From estimate to indicative LTV
The honest answer to "how much can I borrow?" is "tell us the ticker." Once a principal sees the specific counter and the size of your holding, an indicative LTV follows within two to three business days, as part of the wider process. To see roughly where a range might sit before you get in touch, try our illustrative indicative LTV calculator. For the instrument itself, see our stock loans overview and the explainer on what an Indonesia stock loan is.
Frequently asked questions
01How much can I borrow against my Indonesian shares?
02What is the most important factor in setting LTV?
03Why isn't there a fixed LTV percentage?
04How can I support a higher advance?
This article is general information about share-backed financing in Indonesia and is not legal, tax, or financial advice. Indicative ratios are illustrative and depend on the specific holding and structure. It follows our editorial standards; see also our disclosures.