Heaptalk, Jakarta — The Indonesia Stock Exchange (IDX) has established a technology partnership with Nasdaq to upgrade its trading platform to Nasdaq’s most advanced technology.
IDX’s strategic decision to modernize its architecture through a technology partnership with Nasdaq is a significant step towards developing a robust, stable, and sustainable capital market. This move is aligned with the Financial Services Authority’s (OJK) strategic pillars and holds the potential to support Indonesia’s economic development. The partnership also includes extending market surveillance cooperation and enhancing IDX’s Index business, which is expected to foster a more sophisticated and deeper global capital market ecosystem, offering new opportunities for growth and investment.
Nasdaq’s modular and scalable platform is expected to support IDX’s ability to serve the Indonesian capital market as the economy grows continuously. The platform’s support for trading in a wide range of asset classes, including equities, fixed income, foreign exchange, derivatives, and digital assets, provides a solid foundation for IDX’s future growth. This approach also offers the flexibility to support IDX’s goals of expanding its product and service offerings.
Moreover, the introduction of a flexible architecture in the Index business will empower IDX to design and launch new indices quickly as growth opportunities arise. The new platform is expected to double transaction capacity, ensuring a deterministic low-latency trading experience, thereby enhancing the overall trading experience for our stakeholders.
Accelerating the modernization of capital market
“With the upgrade of our trading system and technological infrastructure, we hope to become more competitive and remain attractive to both domestic and international investors. We believe this partnership will accelerate the modernization of Indonesia’s capital market while supporting sustainable economic growth,” stated Sunandar, Director of Information Technology and Risk Management at IDX (06/17).
Over the past few years, IDX has demonstrated robust growth, with trading volumes surging by 65% since 2019 and the total number of investors trading on the exchange skyrocketing by over 400% to 12.6 million. IDX now boasts 921 listed companies, a remarkable 49% increase over the same period, solidifying its position as a frontrunner among ASEAN markets, propelled by Indonesia’s dynamic economic development.
Meanwhile, Magnus Haglind, Head of Marketplace Technology at Nasdaq, said, “We welcome the opportunity to support IDX’s vision and ambition to become a world-class exchange. By supporting the development of a deep and sophisticated capital market ecosystem in Indonesia, we can help realize growth and prosperity across the country and the wider region.”
This agreement builds on Nasdaq’s partnerships across various Indonesian financial systems. In addition to its long-term relationship with IDX, Nasdaq also provides market surveillance technology for OJK, the core technology platform supporting the Indonesian Central Securities Depository (KSEI), and Calypso treasury solutions for Bank Indonesia. Collectively, greater interoperability across Indonesia’s financial system structure will reduce overall complexity and friction, ultimately helping to create a more efficient capital market ecosystem.
