The cost of an Indonesia stock loan has three parts: interest (the headline cost), any fees (arrangement, custody, and legal), and the tenor over which interest accrues. There is no single rate card — pricing is set per transaction against the collateral. The more liquid, less volatile, and less concentrated the pledged counter, the finer the rate; the recourse profile and tenor move it too. The only meaningful number is one issued after a principal has reviewed your actual ticker.
What you pay, in three parts
- Interest — fixed or floating, serviced periodically or rolled into the loan.
- Fees — arrangement, custody, and your own legal costs; set out up front.
- Tenor — typically 12–36 months; longer tenors carry more accrued cost.
How interest is set
Interest on a stock loan is priced to the collateral as much as to prevailing rates. A deeply liquid, stable LQ45 constituent is cheaper to lend against than a volatile, thinly-traded small-cap, because the lender's risk of being unable to realise the collateral cleanly is lower. The structure matters too: a conservative LTV and a full-recourse profile both reduce the lender's risk and can sharpen the rate, while a high-LTV, non-recourse structure costs more because the lender bears more.
Fixed vs. floating
Interest may be fixed for the term, giving you certainty of cost, or floating over a reference rate, which moves with the market. Which suits you depends on your view of rates and your need for predictability — both are available and the choice is part of the indicative terms.
Serviced vs. rolled
You can service interest periodically — paying it as it accrues, often from the dividends on the pledged position — or roll it into the loan balance, so nothing is paid until maturity. Rolling preserves your cash flow during the term but increases the amount owed at the end. The right approach depends on whether the position generates income and on your liquidity needs.
The fees involved
Beyond interest, a transaction may carry an arrangement fee, custody costs for holding the collateral, and your own legal fees for the Indonesian counsel who reviews the documentation. We set these out transparently as part of the indicative terms, so the all-in cost is clear before you commit — there are no fees discovered at signing.
Tenor and how it affects cost
Tenors are typically 12 to 36 months. A longer tenor is not more "expensive" per period, but more interest accrues over its life, and a longer horizon gives the price more time to move — which can also temper the LTV. Renewal and early-repayment mechanics are agreed in the documentation, so you know in advance what extending or unwinding early will involve.
What drives the rate you are offered
In short: the same factors that drive your LTV drive your rate — liquidity, volatility, free float, and concentration — together with the recourse profile and tenor. A clean, liquid, conservatively-sized loan prices best. To get an indicative rate for your position, the path is the same as for any term: share the ticker and size, and a principal returns indicative terms within two to three business days as part of the process.
This article is general information about share-backed financing in Indonesia and is not legal, tax, or financial advice. All pricing is indicative and depends on the specific holding, structure, and market conditions.