Greenwashing Risk in Indonesian Capital Market, IDX Implements Mitigation

PT Bursa Efek Indonesia (IDX) has confirmed that the implementation of the Green Equity Designation (GED), or green-based share designation, for listed companies in the Indonesian capital market refers to international principles.

The move is an effort to maintain the credibility of green-based instruments and reduce the risk of greenwashing in the Indonesian capital market.

Senior Manager of Indices and ESG Business Development at IDX, Rony Suniyanto Djojomartono, during a capital market journalist education session in Jakarta on Friday (21/8/2026), confirmed that the implementation of GED in Indonesia has been aligned with global principles, including principles that serve as references in assessing green-based shares.

“So we are not creating new principles, but we are using international principles,” said Rony.

He explained that there are a number of aspects of concern in ESG assessment, ranging from the financial side, alignment with taxonomy, third-party assessment, corporate governance, to information disclosure.

In its preparation, the IDX conducted comparisons with a number of exchanges that had previously implemented similar schemes, such as Nasdaq, Brazil, Switzerland, and the Philippines.

“So indeed, which markets are our comparison in preparing the Green Equity Decision standards for companies in Indonesia. But indeed, in terms of standards, we use the World Federation of Exchanges (WFE) Green Equity Principles as a reference,” said Rony.