Indonesia Stock Exchange (IDX) launched a new Repurchase Agreement (Repo) Transaction feature on the Alternative Market Trading System (SPPA) on Monday (10/3). This launch aligns with the SPPA development roadmap and aims to enhance efficiency, effectiveness, and liquidity in bond and money market trading for banks, Regional Development Banks (BPD), and Securities Companies. With this Repo Transaction feature, SPPA Users can utilize the platform to conduct Repo Transactions using bond, particularly Government Bonds (SUN), as underlying assets. These Repo Transactions will complement the existing outright transaction features on the IDX SPPA platform.
Business Development Director of IDX Jeffrey Hendrik stated, “Repo transactions with SUN as underlying assets on the same platform as SUN trading will position SPPA as a pool of liquidity for bond trading in Indonesia. This will make it easier for banks, BPDs, Securities Companies, and money brokers who are SPPA Users to monitor bond and money markets on a single platform. SPPA also offers straight-through-processing (STP) from trading to post-trade processes, addressing the industry’s need for efficient transaction mechanisms in the money market.”
The launch of SPPA Repo marks a significant milestone for IDX in playing a more active role in developing and strengthening Indonesia’s financial markets. In accordance with Bank Indonesia’s digitalization strategy and financial market infrastructure strengthening, SPPA Repo is targeted to become a key pillar of Indonesia’s financial market infrastructure.
“We believe SPPA will play a crucial role in Indonesia’s Bonds Trading and Money Market ecosystem. IDX is committed to delivering the best services so that Market Participants can obtain the best prices, best practice trading mechanisms, and seamless post-trade processes. We hope that SPPA can also serve as a shared platform for the Indonesia Financial Services Authority (OJK), Ministry of Finance, and Bank Indonesia to perform price monitoring, act as a price quotation media by Primary Dealers, and assist in decision-making related to fiscal and monetary policies,” Jeffrey explained.
SPPA recorded an exceptional performance in bond transactions in 2024 with a total transaction value of IDR246.1 trillion and the Interdealer Domestic Market Share of 16%, representing a 76% increase in total transaction value and a 77% increase in market share compared to the previous year. Additionally, there are currently 39 SPPA Users who can directly utilize the Bond Repo transaction services starting this year, a 95% increase since its initial implementation. This number is expected to grow as IDX continues to build awareness, communication, and synergy with market participants.
With increasingly comprehensive services through the addition of the Repo Transaction feature, IDX’s SPPA is expected to become the primary choice for bond and money market participants in Indonesia’s capital market. SPPA will also continue to serve as an efficient and secure system for Repo transaction settlement while supporting the sustainability of Indonesia’s capital and money markets.