ASIATODAY.ID, JAKARTA — The Indonesia Stock Exchange (IDX) has taken a decisive step to elevate the global credibility of its stock indices by formally adopting the IOSCO Principles for Financial Benchmarks, an international standard widely regarded as the gold benchmark for index governance and integrity.
Issued by the International Organization of Securities Commissions (IOSCO), the principles emphasize robust governance, transparent methodologies, data quality, integrity, and accountability in the administration of financial benchmarks, including equity indices.
IDX’s commitment is officially documented through its Management Statement of Adherence with the IOSCO Principles for Financial Benchmarks.
According to Jeffrey Hendrik, Director of Development at IDX, the initiative is designed to reinforce investor confidence at a time when transparency and credibility are increasingly critical in global capital markets.
“By adopting IOSCO Principles, we ensure that IDX stock indices are managed through clear governance structures and sound methodologies. This provides strong assurance to investors that our indices are reliable investment benchmarks aligned with international standards,” Jeffrey said on December 17, 2025.
He added that the move is also aimed at strengthening the competitiveness of IDX indices as underlying assets for high-quality investment products, including mutual funds, exchange-traded funds (ETFs), and index-based derivatives.
Initial Focus on Flagship Indices
In its first phase, IDX has applied the IOSCO Principles to three of its flagship indices — IDX30, LQ45, and IDX80 — which are widely used as market benchmarks and serve as the foundation for a broad range of investment instruments in Indonesia’s capital market.
These indices play a pivotal role in reflecting market performance and investor sentiment, making them a priority in IDX’s benchmark governance upgrade.
Gradual Rollout Across All Indices
Currently, IDX administers 48 stock indices, underscoring the importance of a standardized, globally recognized framework to safeguard index quality and relevance amid rapidly evolving market dynamics.
IDX confirmed that the adoption of the IOSCO Principles will be expanded gradually to other indices, reinforcing the exchange’s position within both the domestic and international capital market ecosystem.
This milestone signals a new chapter for Indonesia’s capital market, positioning IDX indices not merely as domestic market indicators but as globally credible investment benchmarks aligned with international best practices. (AT Network)
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