IDX launched the Green Equity Designation to promote sustainable finance in the Indonesian capital market. Companies meeting green criteria receive visibility and investors gain structured, transparent information for sustainable investment decisions.
Through this initiative, IDX grants a special designation to shares of Listed Companies that meet the criteria for green economic activities and/or transition toward a low-carbon economy. The designation is expected to provide stronger visibility for companies, while offering investors information that is more structured, measurable, transparent, and independently verified.
At the inaugural launch of the IDX Green Equity Designation, IDX designated 3 (three) Listed Companies, namely: a. PT Hero Global Investment Tbk (HGII) as Green Equity; b. PT Kencana Energi Lestari Tbk (KEEN) as Green Equity; and c. PT TBS Energi Utama Tbk (TOBA) as Green Equity Transition. The three companies had previously participated in the piloting process for the Green Equity Designation together with External Reviewers, namely S&P Global Ratings and PT SUCOFINDO (PERSERO).
The IDX Green Equity Designation was developed to help the market identify Listed Companies with a measurable contribution to green economic activities or the transition process. This initiative is also part of IDX’s efforts to encourage sustainability aspects to become further integrated into companies’ business strategies and long-term value creation.
For Listed Companies, the designation is expected to increase visibility among investors who consider sustainability aspects, as well as open opportunities to expand their investor base and access to sustainable financing.
For investors, the designation provides an additional reference for identifying companies whose business activities contribute to the green economy or transition, based on measurable criteria that have undergone independent review.
The IDX Green Equity Designation was developed with reference to the Indonesian Taxonomy for Sustainable Finance (TKBI) or other applicable taxonomy references as the basis for measuring business activities that meet green economic activity criteria and is further supplemented by international best practices through the Green Equity Principles from the World Federation of Exchanges (WFE).
The designation framework is supported by 5 (five) main pillars: Financial, Taxonomy, Governance, Assessment, and Disclosure. The Financial aspect measures the contribution of green and/or transition activities through revenue and/or investment. The Taxonomy aspect assesses the alignment of business activities with the TKBI or other applicable taxonomy references. The framework is further strengthened through Governance, periodic Assessment, and public Disclosure of assessment results.
The designation is granted on a voluntary basis to shares of Listed Companies as well as prospective Listed Companies that apply to IDX and meet the criteria based on a review report from an External Reviewer. The designation for HGII, KEEN, and TOBA is valid from 28 August 2026 until the annual evaluation period in July 2027. To maintain the designation, Listed Companies are required to conduct periodic assessments, update relevant information, and submit review reports from External Reviewers to IDX in accordance with the established mechanism.
The development of the Green Equity Designation began in 2025, involving 4 (four) Listed Companies and 3 (three) External Reviewers in the piloting process. This process was used to test the assessment framework and process, the independent review mechanism, and information disclosure prior to the initiative’s broader implementation. Input and lessons learned from the piloting process were an important part of ensuring the IDX Green Equity Designation can be implemented credibly and in accordance with the needs of the Indonesian capital market.
“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.”
“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,” said IDX President Director Jeffrey Hendrik.
Going forward, the IDX Green Equity Designation is expected to become one of the foundations for developing a sustainable product and investment ecosystem in the Indonesian capital market, including as a reference for the development of indices, investment products, and sustainability-based financing instruments.
With an increasing number of Listed Companies meeting the criteria, IDX hopes to encourage the mobilization of capital toward economic activities that contribute positively to environmental goals and sustainable development, while also supporting Indonesia’s transition toward a low-carbon economy.
This initiative also strengthens the capital market’s position as part of an ecosystem that brings together companies seeking capital to grow and transition with investors who increasingly consider sustainability aspects in their investment decisions.
IDX emphasizes that the IDX Green Equity Designation is not a rating, investment recommendation, or guarantee of a stock’s financial performance, rate of return, or investment risk. Investors are still required to conduct thorough analysis and consider their risk profile and investment objectives before making investment decisions.
Information on Listed Companies that have obtained the Green Equity Designation, along with the review results from External Reviewers, is published through IDX’s website and media channels, making it accessible to investors and other stakeholders.
Further information regarding the Green Equity Designation can be accessed through: https://www.idx.co.id/en/regulation/decree-of-directors.
Further information regarding Listed Companies that acquired Green Equity Designation can be accessed through: https://sustainability.idx.co.id/investment/green-equity-designation.
Source : Providing Incentives for Green Listed Companies, IDX Launches IDX Green Equity Designation
