SGX Group and Indonesia Stock Exchange Forge Landmark Depository Receipts Linkage: What Investors Must Know

Key Points: Major ASEAN Market Integration, Blue-Chip Access, and Liquidity Boost

• SGX Group (Singapore Exchange) and Indonesia Stock Exchange (IDX) have launched a new Indonesia-Singapore Depository Receipt (DR) Linkage.
• Singapore Depository Receipts (SDRs) now include Indonesian blue-chip companies: Bank Central Asia, Telkom Indonesia, and Indofood CBP, all part of the benchmark IDX30 Index.
• This initiative follows a Memorandum of Understanding signed in 2024, and represents only the second exchange-level DR cooperation in ASEAN, after Thailand-Singapore.
• Investors in Singapore can access Indonesian-listed securities via SDRs, trading in SGD during SGX hours, through their local brokers.
• The addition of Indonesian SDRs brings the total SDRs on SGX to 26, showing accelerating interest in regional cross-border investing.

Why This Matters for Shareholders and Market Participants

This announcement is potentially price sensitive and could have material impact on SGX Group’s share value and the underlying Indonesian companies. The launch of the Indonesia-Singapore DR Linkage is a significant step towards integrating ASEAN capital markets, which may:

• Expand investor base and liquidity for Indonesian stocks, as Singapore investors can now participate directly, potentially increasing trading volumes and visibility for these companies.
• Enhance SGX’s competitive positioning as a regional investment hub, attracting global and ASEAN investors seeking diversified exposure to high-growth Southeast Asian assets.
• Benefit Singapore shareholders by potentially driving higher trading fees and cross-border listings, supporting SGX’s growth strategy and revenue diversification.
• Potentially trigger re-rating of Bank Central Asia, Telkom Indonesia, and Indofood CBP due to increased international investor access and demand.
• Support further market collaboration and harmonization in ASEAN, following the successful Thailand-Singapore DR linkage.

Strategic and Operational Details

• Phillip Securities Pte Ltd is the issuer for the inaugural batch of Indonesian SDRs. The SDRs represent beneficial ownership in the underlying IDX-listed companies.
• Investors can trade these SDRs in Singapore dollars, during SGX market hours, using standard brokerage accounts, simplifying overseas investment processes.
• The move aligns with SGX’s broader strategy of regional connectivity, as outlined in the Equities Market Review Group’s recommendations announced in February.
• For Indonesian companies, the linkage offers greater visibility in Singapore, facilitating international capital flows and potentially driving up valuations.
• Both SGX and IDX leadership have positioned this as a strategic milestone, focused on making ASEAN capital markets more inclusive and globally connected.

Potential Market Impact and Investor Considerations

The Indonesia-Singapore DR Linkage is expected to:

• Drive higher liquidity and broader participation in the underlying Indonesian stocks, which could positively affect share prices and valuations.
• Increase SGX Group’s market activity and revenues, as cross-border trading grows.
• Encourage other ASEAN exchanges to pursue similar collaborations, strengthening the region’s appeal to global investors.
• Make cross-border investing more straightforward and accessible for retail and institutional investors in Singapore.

This move is particularly important for shareholders as it positions SGX Group at the heart of ASEAN’s capital market integration, potentially supporting long-term growth in both trading volumes and reputation.

Conclusion

SGX Group’s partnership with IDX to launch the Indonesia-Singapore Depository Receipt Linkage marks a transformative moment for ASEAN financial markets. By enabling Singapore investors to seamlessly access Indonesian blue-chip stocks, both exchanges stand to benefit from increased liquidity, investor participation, and regional integration. With 26 SDRs now listed, SGX is making strides towards its vision of being a global investment hub, while Indonesian companies gain greater international visibility and potential valuation uplift.

Investors should monitor trading volumes, price movements, and further announcements around the expansion of SDRs, as well as potential new linkages in the ASEAN region.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult a qualified financial advisor before making investment decisions. The information herein is based on public disclosures from SGX Group and IDX as of October 16, 2025, and may be subject to change.

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