As part of its commitment to strengthening the sustainable finance\necosystem and increasing the visibility of listed companies contributing\nto environmental goals, the Indonesia Stock Exchange (IDX) has issued a\nBoard of Directors Decree regarding the establishment of Green Equity\nDesignation, effective from Friday, 31 July 2026. This decree is a\nfurther implementation of Exchange Regulation No.\u00a0I-A, which empowers\nthe IDX to categorise listed companies based on their sustainability\ncontributions.<\/p>\n
The regulations were developed in alignment with the Indonesian\nSustainable Finance Taxonomy and international best practices, including\nthe Green Equity Principles issued by the World Federation of Exchanges.\nThe Green Equity Designation is awarded to listed companies or\nprospective listed companies that, based on reviews by external review\nproviders, meet specific criteria. These include the business\u2019s\ncontribution to green economic activities or transition, compliance with\nfinancial and governance requirements, and transparency in\nsustainability reporting. To maintain these standards, listed companies\nare required to undergo periodic assessments and resubmit external\nreview reports to the IDX for evaluation.<\/p>\n
The primary objective of this designation is to improve the\ntransparency and quality of sustainability information available to\ninvestors, the public, and stakeholders, including the banking sector.\nThe initiative is also expected to drive business transformation towards\na green, low-carbon economy while expanding access to sustainable\nfunding sources and investor bases. This move supports Indonesia\u2019s\ncommitment to sustainable development goals and emission reduction\ntargets.<\/p>\n
Since the development of the Green Equity Designation began in 2025,\nfour listed companies and three external review providers have\nparticipated in a pilot programme. The positive feedback from this pilot\nserves as a foundation for the IDX to refine the regulations for wider\nimplementation. Moving forward, companies that participated in the pilot\nmay continue the designation process in accordance with the established\nmechanisms.<\/p>\n
\u201cThe Green Equity Designation is a concrete step by the IDX to\nconnect the sustainability agenda with the real funding needs of listed\ncompanies. Through more structured and verified information, we are\nmaking it easier for both domestic and global investors to identify\ncompanies that truly contribute to the low-carbon transition, while\nsimultaneously expanding access to sustainable funding sources,\u201d stated\nthe Director of Development at IDX, Iding Pardi.<\/p>\n
Through this initiative, the IDX hopes to provide structured\ninformation to investors and stakeholders, enhancing the visibility of\nlisted companies and supporting the development of sustainability-based\nindices and investment products in the Indonesian capital market.\nHowever, the IDX emphasises that the Green Equity Designation does not\nconstitute a ranking, investment recommendation, or a guarantee of\nfinancial performance, returns, or investment risk. Investors are\nadvised to conduct thorough analysis and consider their risk profiles\nand investment objectives before making decisions.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/idx-establishes-green-equity-designation-1785495088", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }