Our Commitments Towards ESG Implementation in Indonesian Capital Market

In accordance with Indonesia's commitment to achieve the United Nations Sustainable Development Goals (“SDGs”), the Indonesia Stock Exchange (IDX) has implemented a series of Sustainable finance initiatives as a part of our efforts to create an inclusive and globally competitive Capital Market, as well as to become a catalyst to realize Indonesia's economic sector that are healthy, stable, and growing sustainably.

IDX' ambition to support sustainability in Indonesia Capital Market is proven by the implementation of the following initiatives:

  • IDX became a part of the Sustainable Stock Exchanges (SSE) on April 18, 2019. SSE is a forum for global stock exchanges to encourage the creation of transparency from companies on activities that contribute to solving problems related to Environmental, Social, and Governance (ESG) aspects.

IDX Commitment Towards SDGs

  • As a member of the SSE, IDX engages in the following initiatives to promote sustainability:

  • The launching of ESG focused indices, ESG Leaders (Launched on December 14t, 2020) and SRI-KEHATI (Launched on June 8 2009), which aimed to improve the transparency of Listed Companies’ ESG performance and to drive the implementation of sustainability target as a part of Investor’s decision making process.

  • Collaboration with Sustainalytics to provide the Environment, Social, Governance (ESG) scores for our listed companies.

  • The issuance of IDX Sustainability Report,based on OJK Regulation No. 51/POJK.03/2017 and GRI reporting standards.

  • ESG capacity building for IDX’s stakeholders, which aimed to increase the awareness regarding ESG principles and to foster the ESG implementations for Indonesian Capital Market’s stakeholders.

  • Creating Sustainable Finance Action Plan (“RAKB”) in accordance with OJK regulation No. 51/POJK.03/2017. The RAKB is expected to become the basis for all IDX personnel to support the creation of a capital market ecosystem that emphasizes the development of Sustainable finance.

  • The issuance of regulation that supports sustainability based financial instruments, such as Rule No. I-B which incentivizes the issuance of green bonds by giving annual listing fee discounts for the issuance of green bonds.

  • IDX became a part of Task Force on Climate-related Financial Disclosures (TCFD) Supporters in June 2021.

For more information, please access Indonesia Stock Exchange’s Sustainability Report through this link
Sustainability Report