IDX Launches Green Equity Designation, Why It Matters for Indonesia
The Indonesia Stock Exchange (IDX) has officially begun a new era of sustainable investment in the domestic stock market by implementing the IDX Green Equity Designation starting Friday (28/8/2026).
In the initial phase, the IDX designated shares of PT Hero Global Investment Tbk (HGII) and PT Kencana Energi Lestari Tbk (KEEN) as Green Equity, while PT TBS Energi Utama Tbk (TOBA) received the Green Equity Transition designation. The three designations are effective from 28 August 2026.
The green share designations also involved independent parties. HGII and TOBA used S&P Global Ratings as the external review provider, while KEEN used PT Sucofindo (Persero) to assess the company’s compliance with the criteria set by the IDX.
What Is Green Equity?
Simply put, the IDX Green Equity Designation is a marker for shares of listed companies whose business activities are deemed to contribute to the green economy.
The IDX divides it into two categories. Green Equity is intended for companies that have met the green economic activity criteria, while Green Equity Transition accommodates companies still in the process of transforming towards greener business activities.
For companies that have generated revenue, one of the Green Equity requirements is that more than 50% of annual revenue comes from green economic activities. Other criteria include alignment with the taxonomy referenced by the IDX, corporate investment, governance, information disclosure, and external party assessment.
Global Investors Increasingly Eyeing Sustainable Investment
Morgan Stanley’s Sustainable Signals survey shows that global investor attention to sustainable investment continues to strengthen. A total of 88% of global investors expressed interest in sustainable investing in 2025, rising to 92% in 2026.
In 2026, the level of interest is also high across various regions. Some 94% of investors in Europe expressed interest in sustainable investing, followed by 93% of investors in Asia Pacific and 88% in North America.
The trend shows that sustainability issues are increasingly becoming part of investors’ considerations when looking at investment opportunities.
In that context, the presence of the IDX Green Equity Designation can serve as a new reference for investors to more easily identify companies deemed to have green activities as well as companies undergoing a transition towards more sustainable business activities.
What Is the Impact on the Indonesian Economy?
The presence of the IDX Green Equity Designation can help increase capital flows into green economic and transition activities in Indonesia.
As global investors increasingly consider sustainability factors, clearer markers can make Indonesian green projects and companies more easily recognisable to both domestic and foreign sources of capital.
From an economic perspective, this can support transition financing in sectors such as clean energy, low-carbon industry, natural resource management, and green infrastructure.
The more capital that flows into these sectors, the greater Indonesia’s opportunity to accelerate its transformation towards a low-carbon economy without relying solely on government financing.
This designation also strengthens transparency and information credibility. Clearer standards and external reviews can increase investor confidence in the green claims of Indonesian companies, while encouraging more businesses to transform in order to attract sustainable capital.
What Are the Benefits for Companies?
For listed companies, the IDX Green Equity Designation can increase visibility in the eyes of investors who consider sustainability factors. The status signals that the company has met certain criteria related to green activities, governance, information disclosure, and external review.
The marker can also strengthen corporate credibility because green information does not come solely from internal claims. For companies still in transition, the Green Equity Transition category provides room to demonstrate that efforts towards a lower-carbon business model are underway and can be assessed in a more structured manner.
This is increasingly relevant as Morgan Stanley notes that 84% of companies consider investor support important for executing their sustainability strategies.
In the longer term, the status can expand a company’s access to investor groups that have sustainable investment mandates or preferences.
Global Exchanges Also Have Green Markers
Indonesia is not the first to develop a marker for green companies. The London Stock Exchange (LSEG) already has the Green Economy Mark, which is awarded to companies and funds with at least 50% of revenue derived from products and services that contribute to the green economy.
The scope of activities is quite broad, ranging from energy, energy efficiency, transport, food and agriculture, waste and pollution management, to infrastructure and water technology. This shows that the green economy is not only synonymous with renewable energy, but also encompasses various business activities that support the transition.
In the Indonesian context, a similar approach opens opportunities for listed companies from various sectors to obtain green recognition, as long as their business activities meet the criteria set out in the IDX Green Equity Designation.