The Indonesia Stock Exchange (IDX) officially introduced a Repurchase Agreement (Repo) transaction feature with Sovereign Sharia Securities (SBSN) as underlying assets through the Alternative Market Operator System (SPPA). This initiative is projected to be a strategic step in modernizing electronic trading infrastructure while deepening financial market penetration in Indonesia.
IDX Development Director, Iding Pardi, emphasized that the introduction of this feature is a tangible manifestation of the exchange's support for strengthening the national Islamic financial market. Through a more integrated, transparent, and efficient system, IDX aims to increase transaction activity in the SBSN secondary market, which has so far accounted for a relatively small portion compared to Government Debt Securities (SUN).
IDX data indicates that throughout 2025, the inter-dealer SBSN Repo transaction value remained below IDR 1 trillion, a stark contrast to SUN Repo transactions which surpassed IDR 2,500 trillion. Through this innovation, market participants, such as commercial banks and regional development banks, now have a more flexible instrument to manage their liquidity and investment portfolios.
Interestingly, Repo transactions with underlying SBSN between conventional financial institutions can now be facilitated through conventional Repo schemes based on the Global Master Repurchase Agreement (GMRA). This policy aligns with the National Sharia Council-Indonesian Ulema Council (DSN-MUI) Fatwa No. B-0781/DSN-MUI/X/2025, providing legal certainty for market participants regarding the scope of such transactions.
This development project is the result of synergistic collaboration between IDX and the Ministry of Finance of the Republic of Indonesia. As a follow-up step, IDX alongside Bank Indonesia and the Directorate General of Financing and Risk Management (DJPPR) conducted a series of technical briefings to ensure all market participants understand the new mechanism for SBSN-based liquidity management.
