Ecobiz.asia — The Indonesia Stock Exchange (IDX) has launched the IDX Green Equity Designation, a new classification for listed companies whose business activities meet criteria for contributing to the green economy and/or transitioning toward a low-carbon economy.
The designation was launched on Friday (Aug. 28, 2026), as the exchange seeks to strengthen Indonesia’s sustainable finance ecosystem by providing investors with more structured and measurable information on companies’ environmental contributions.
At the initial launch, IDX designated three listed companies: PT Hero Global Investment Tbk (HGII) and PT Kencana Energi Lestari Tbk (KEEN) as Green Equity, and PT TBS Energi Utama Tbk (TOBA) as Green Equity Transition.
The three companies previously participated in a pilot program for the green equity designation, supported by external review providers S&P Global Ratings and PT SUCOFINDO (Persero).
IDX said the designation is intended to help investors identify companies making measurable contributions to green economic activities or the transition to a low-carbon economy. It is also designed to encourage companies to integrate sustainability considerations into their business strategies and long-term value creation.
For listed companies, the designation could increase visibility among sustainability-focused investors, potentially broadening their investor base and access to sustainable financing.
For investors, it provides an additional reference for identifying companies whose activities contribute to the green economy or low-carbon transition based on measurable criteria and independent review.
The framework is based on Indonesia’s Sustainable Finance Taxonomy (TKBI) and/or other recognized taxonomies. IDX also uses the Green Equity Principles developed by the World Federation of Exchanges (WFE) as an international reference.
The designation is built around five pillars: Financial, Taxonomy, Governance, Assessment and Disclosure. The Financial pillar measures the contribution of green and/or transition activities through revenue and/or investment, while the Taxonomy pillar assesses the alignment of business activities with the TKBI.
The framework is supported by governance requirements, periodic assessments and public disclosure of assessment results.
The designation is voluntary and can be applied for by listed companies or prospective listed companies that meet the requirements based on an external review report.
For the initial recipients, the designation takes effect from Aug. 28, 2026, through the annual evaluation period in July 2027. Companies must conduct periodic assessments, update relevant information and submit external review reports to IDX to maintain their designation.
IDX President Director Jeffrey Hendrik said the initiative would help strengthen transparency and credibility in Indonesia’s capital market while reinforcing its sustainability focus.
“IDX Green Equity Designation is an important milestone in building an Indonesian capital market that is increasingly transparent, credible and sustainability-oriented,” Jeffrey said.
He said the initiative is expected to improve the quality of sustainability disclosures, expand the investor base, create opportunities for sustainable financing and encourage companies to make sustainability part of their long-term growth strategies.
IDX aims to expand the number of listed companies meeting the designation criteria, helping channel capital toward economic activities that contribute to environmental and sustainable development goals and supporting Indonesia’s transition to a low-carbon economy.
The exchange stressed that the designation is not a ranking or investment recommendation, nor does it guarantee a stock’s financial performance, investment return or risk profile. Investors are still required to conduct their own comprehensive analysis before making investment decisions. ***
