PT Bursa Efek Indonesia (IDX) has reaffirmed its commitment to enhancing the credibility of its stock indices by ensuring that the index management process aligns with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks. These principles represent international standards emphasizing governance, integrity, methodology, quality, and accountability in managing financial benchmarks, including stock indices. This commitment is detailed in the Management Statement of Adherence with IOSCO Principles for Financial Benchmarks issued by the IDX.
Jeffrey Hendrik, Director of Development at the IDX, stated that the adoption of these principles is part of the Exchange’s initiative to ensure that its stock indices are managed credibly, transparently, and accountably in accordance with international standards. “Through this step, we aim to provide strong assurance to investors that IDX indices are constructed using clear governance and methodology, making them reliable investment benchmarks,” Jeffrey said. He added that this initiative also aims to bolster the competitiveness of IDX indices as benchmarks for various high-quality investment products.
In the initial phase, the implementation of the IOSCO Principles for Financial Benchmarks is focused on three of the IDX’s flagship indices: IDX30, LQ45, and IDX80, which are already widely used as market benchmarks and the basis for various investment products.
With 48 stock indices currently available on the IDX, the implementation of these international principles serves as a crucial foundation for maintaining index quality and relevance amidst market dynamics. Moving forward, the application of the IOSCO Principles will be expanded gradually to other indices on the IDX to strengthen their position within both domestic and global capital market ecosystems.
The Management Statement of Adherence with IOSCO Principles for Financial Benchmarks document can be downloaded via www.idx.co.id > Products & Services > Index > Index Policy or through the link: https://www.idx.co.id/en/products/index/.
