To Promote Sustainable Investment, IDX and PT SMI Revamp SMInfra18 Methodology

PT Bursa Efek Indonesia (IDX) together with PT Sarana Multi Infrastruktur (SMI) (Persero) has officially announced the adjustment of evaluation criteria for the SMInfra18 index. This step is taken to respond to the growing market interest in sustainable investment and to strengthen the Environmental, Social, and Governance (ESG) aspects in Indonesia’s capital market.

In its announcement, IDX explained that this adjustment aims to increase awareness of sustainable investment while providing long-term added value for investors. PT SMI itself plays a strategic role as a pioneer in implementing ESG in national infrastructure financing.

Significant changes are evident in the index weighting methodology, which previously used Capped Free Float Adjusted Market Capitalization Weighted, now shifting to Capped Free Float Adjusted Multi Factors Weighted Average.

In addition, the initial selection criteria (eligibility) now require prospective constituents to issue a Sustainability Report or have recognised ESG information disclosure.

Liquidity requirements have also been tightened, where selected stocks must have a transaction days frequency (JHT) of 100% or be traded every day in the last six months without being suspended.

The selection process for the 18 constituent stocks will henceforth be based on the highest ranking from a multi-factor model that includes fundamental aspects, valuation, corporate governance (good governance), ESG, and market liquidity.

This criteria adjustment will begin to be applied in the major evaluation in April 2026 and will officially take effect on the first trading day in May 2026.