The Indonesia Stock Exchange (IDX) has launched the IDX Green Equity Designation, establishing a framework to categorize listed companies engaged in green economic activities or active transition towards a low-carbon economy.
The voluntary designation framework is benchmarked against the Indonesian Taxonomy for Sustainable Finance (TKBI) and the World Federation of Exchanges (WFE) Green Equity Principles. The evaluation model operates across five core pillars: Financial, Taxonomy, Governance, Assessment, and Disclosure. Under the financial pillar, eligibility is assessed based on the proportion of green or transition-related activities reflected in corporate revenue and capital expenditure.
During the launch on 28 August 2026, IDX awarded the designation to three initial issuers following a pilot assessment phase conducted with external reviewers S&P Global Ratings and PT SUCOFINDO (PERSERO).
The initial company designations include:
- Green Equity Status: PT Hero Global Investment Tbk (HGII) and PT Kencana Energi Lestari Tbk (KEEN).
- Green Equity Transition Status: PT TBS Energi Utama Tbk (TOBA).
- Validity Period: The inaugural designations for HGII, KEEN, and TOBA remain valid through to the annual evaluation cycle in July 2027, subject to periodic reviews and updated external audit reports.
IDX President Director Jeffrey Hendrik stated: “The IDX Green Equity Designation is an important milestone in building an Indonesian capital market that is increasingly transparent, credible, and sustainability-oriented. Through this initiative, IDX aims to provide stronger visibility for Listed Companies that make a real contribution to the green economy and transition, while also providing a better reference for investors in allocating their capital.”
He added: “Going forward, we hope this initiative will not only improve the quality of sustainability information disclosure, but also expand the investor base, open up opportunities for sustainable financing, and encourage more companies to make sustainability part of their long-term growth strategy.”
IDX clarified that the designation does not constitute an investment recommendation or financial guarantee. Disclosure data and third-party evaluation reports for designated issuers have been published on the official exchange platform.
