INDONESIA: IDX Introduces Electronic Trading Platform for Bond and Sukuk

Tuesday November 10 2020

On 9^th November 2020, the Indonesia Stock Exchange (IDX) announced that the Financial Services Authority (OJK) has issued the Financial Services Authority Regulation (POJK) Number 8/POJK.04/2019 concerning Indonesia Alternative Market Trading System (SPPA). Based on the POJK, the Indonesia Stock Exchange has been appointed by the OJK to act PPA. As PPA, IDX has the opportunity to develop its business not only as an Exchange trading facilitator, but also as an Over the Counter trading operator. IDX welcomes its appointment as PPA and takes strategic initiatives by developing an Electronic Trading Platform (ETP) for Bond and Sukuk trading in the secondary market.

Previously, the Exchange had also developed ETP for Bond and Sukuk trading in the secondary market, however, the first stage of ETP was still very simple and had limited facilities. After one year of development, today, Monday, 9^th November 2020, IDX launched ETP Phase 2, which is named Indonesia Alternative Market Trading System or can be called SPPA.

To date, there are 20 (twenty) Indonesian Bond Market players who have become SPPA users. Eighteen of the twenty Primary Dealers for Government Bonds (SUN) have become SPPA users and can start using SPPA as a bond and sukuk trading platform.

In addition to launching SPPA, IDX also issued 4 (four) PPA regulations, namely:

1) Regulation on Determination of Tradable Securities at SPPA;

2) Trading Regulation;

3) SPPA User Regulation; and

4) Trading Surveillance Regulation.

With such a reliable system and four regulations, PPA is expected to be able to conduct Bond and Sukuk trading in the Secondary Market in an orderly, fair and efficient manner. IDX is optimistic that with its role as PPA, IDX can support the creation of a more efficient and liquid Bond and Sukuk Market.

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