Most IDX-listed shares can be considered for a stock loan, but not every line is equally financeable, and a few are difficult or impossible to finance at all. Eligibility is assessed case by case against a handful of factors: free float, average daily trading value, market capitalisation, sector, shareholder concentration, and any foreign-ownership limit. The same factors that decide whether a counter qualifies also decide its LTV. A liquid LQ45 constituent qualifies easily and finances well; a thinly-traded, closely-held micro-cap may not qualify at any useful ratio.
What we look at
- Free float — how much of the company actually trades.
- ADTV — average daily trading value; the liquidity test.
- Market capitalisation — overall size and depth.
- Sector — volatility patterns and any foreign-ownership cap.
- Concentration — your position against the float and daily volume.
Liquidity is the gatekeeper
The first question is always liquidity. A lender has to be able to value the collateral reliably and, in the worst case, realise it without destroying the price. A counter with healthy average daily trading value and a genuine free float clears that test easily. A line that trades rarely, or where a handful of holders own almost everything, does not — there is no dependable market to exit into. Liquidity is what separates a counter that qualifies comfortably from one that struggles.
Free float and concentration
Free float and concentration are two sides of the same coin. A large free float means a deep, reliable market; a small one means the price can be moved by a single sizeable order. Your own position is assessed against that float and the daily volume: a stake that represents a few days of trading is straightforward, while one that represents many weeks of volume is sized far more cautiously, even in an otherwise liquid name.
Market cap and sector
Market capitalisation is a proxy for depth and resilience — larger companies tend to be steadier collateral. Sector matters for two reasons: some sectors are inherently more volatile (resources and commodity-linked names swing harder than consumer staples), and some carry foreign-ownership limits that shape how the position can be financed or enforced. Neither rules a counter out, but both feed into the structure and the LTV.
Main Board and Development Board
Eligibility is not confined to the blue chips. Coverage spans IDX Main Board names through to selected Development Board growth companies — the test is the counter's liquidity and float, not the board it sits on. A well-traded Development Board company with a real float can be financeable; a sleepy Main Board name with almost no turnover may not be. We look at the share, not the label.
What reduces or rules out an advance
Several features pull an LTV down or, in combination, make a counter hard to finance: very low free float, thin daily volume, high volatility, an extreme concentration relative to the market, suspension or other trading restrictions, or an unaddressed foreign-ownership constraint. None of these is automatically fatal on its own, but together they define the boundary of what is financeable.
The only reliable test
General rules take you only so far — the real answer comes from looking at the specific ticker. Share the counter and the size of your holding, and a principal will tell you whether it qualifies and, if so, at what indicative LTV, usually within two to three business days. For how that ratio is built, see how much you can borrow against Indonesian shares, and for the instrument itself, the stock loans overview.
This article is general information about share-backed financing in Indonesia and is not legal, tax, or financial advice. Eligibility and LTV depend on the specific holding, structure, and market conditions.