Indonesia exchange deepens commitment to ESG practices

18 April 2019

(18 April 2019) The Indonesia Stock Exchange (IDX) committed to promoting sustainability in its capital market,  becoming a member of the United Nations Sustainable Stock Exchanges (SSE) initiative. This new partnership reaffirms the exchange’s commitment to spur long-term sustainable investment, as well as improved environmental, social and corporate governance (ESG) disclosure, while enhancing performance among listed companies and Exchange members. The SSE works with stock exchanges through research, consensus building and technical assistance to contribute to the achievement of the United Nations Sustainable Development Goals (SDGs) and to stimulate investment for a sustainable future. Stock exchanges around the world partner with the SSE to work towards a common objective of fostering financial markets that support the growth of sustainable and responsible business practices. Inarno Djajadi, Chief Executive Officer of Indonesia Stock Exchange, said: “Moving forward, IDX is committed to promote sustainability and transparency in Indonesia’s Capital Market and we are proud to join SSE initiative, creating a more sustainable capital market and a more sustainable environment. As the only stock exchange in Indonesia, a country with the largest GDP in ASEAN, we believe IDX can contribute to not only on economic growth, but also on influencing our nation to focus on long-term sustainable development. Together with the Indonesia Financial Services Authority, Indonesia’s Capital market has many initiatives in adopting sustainable practices, for example the electronic integrated reporting, electronic submission, and obligation to submit sustainability report.”  

About Indonesia Stock Exchange

Indonesia Stock Exchange is an exchange for equity, bonds, and derivative instruments. As of 31 March 2019, there are 626 companies which has been listed (stocks) amounting to USD$516.45 Million of market cap. IDX has listed its first green bonds in 2018. Currently IDX has SRI-KEHATI indices, as one of ESG indices. This index uses the principles of sustainability, finance, and good governance, as well as environmental concerns as a benchmark. There are several ESG related ETFs listed at IDX

About the SSE

The SSE initiative is a UN Partnership Programme organised by UNCTAD, the UN Global Compact, UNEP FI and the PRI. The SSE’s mission is to provide a global platform for exploring how exchanges, in collaboration with investors, companies (issuers), regulators, policymakers and relevant international organizations, can enhance performance on ESG (environmental, social and corporate governance) issues and encourage sustainable investment, including the financing of the UN Sustainable Development Goals. The SSE seeks to achieve this mission through an integrated programme of conducting evidence-based policy analysis, facilitating a network and forum for multi-stakeholder consensus-building, and providing technical assistance and advisory services.