Nasdaq and the Indonesia Stock Exchange (IDX) announced an expansion of their technology partnership which will see IDX upgrade its core trading platform to Nasdaq’s most advanced matching engine. The deal also includes an extension of Nasdaq’s market surveillance partnership with IDX, and an agreement to enhance IDX’s index business to help foster a deeper and sophisticated global capital markets ecosystem.
In addition to Nasdaq’s long-standing relationship with IDX, Nasdaq provides market surveillance technology to OJK, Indonesia’s Financial Services Authority, the core technology platform that underpins KSEI, Indonesia’s central securities depository, and its Calypso treasury solution to Bank Indonesia, the country’s central bank. The decision by IDX to modernize its underlying architecture is in line with the strategic pillars set out by OJK to develop a robust, stable, and sustainable capital market that can support the ongoing development of the Indonesian economy.
Sunandar, director of Information Technology and Risk Management at IDX, said in a statement: “With this trading system and technology infrastructure upgrade, we envisage becoming more competitive and staying attractive for both domestic and international investors. We believe this partnership will speed up the modernization advancement of the Indonesia capital market while supporting sustainable economic growth.”
IDX has experienced a period of rapid growth over recent years with trading volumes having increased 65% since 2019, while the total number of investors trading on its exchange has grown by over 400% to 12.6 million. Today IDX has 921 companies listed on its exchange, an increase of 49% over the same period and solidifying its position as the leader amongst ASEAN markets, driven by the ongoing development of the Indonesian economy.
Magnus Haglind, head of Marketplace Technology at Nasdaq, said in a statement: “Nasdaq is playing a critical role at the heart of Indonesia’s modernization story. We welcome the opportunity to support Indonesia Stock Exchange’s vision and ambition to become a world-class exchange. By supporting the development of a deep and sophisticated capital markets ecosystem in Indonesia, we can help deliver growth and prosperity across the country and wider region.”