IDX Targets IDR 140 Trillion Debt Letter Transactions In 2024 Through SPPA

Bonds (Photo: dock. Antara)

JAKARTA - The Indonesia Stock Exchange (IDX) targets Debt and Sukuk (EBUS) Effect transactions to reach IDR 140 trillion through the Alternative Market Organizing System (SPPA) in 2024.

Head of the IDX's 1 Business Development Division, Firza Rizqi Putra, said that throughout 2023 he managed to record transactions worth IDR 139 trillion, an increase of 12 percent compared to 2022. As for February 19, 2024, the average daily transaction value (RNTH) in SPPA reached IDR 1.63 trillion with a total transaction of IDR 32 trillion.

"We hope that 2024 will reach a transaction value of IDR 140 trillion by the end of the year. Therefore, we are optimistic about the enthusiasm of market participants to use SPPA as a platform," Firza said at a press conference at the IDX Building, Monday, February 19.

Firza said that the increase in transaction value occurred in several instruments, one of which was that market participants bought up many fixed rates of government bonds (FR).

"Market participants have also started using SPPA as a price disclosure. Not only for government bonds in the FR series, but also for the Sukuk Based Project (PBS) for example. This continues to be included in SPPA," he explained.

Meanwhile, IDX Development Director Jeffrey Hendrik expects regular, reasonable, and efficient EBUS trading in the secondary market through the SPPA system.

Jeffrey said that in the future there will be several strategies in increasing transactions and in the short term there will be socialization and discussions with users and prospective users to be more able to participate.

"In the short term, we carry out socialization, discussions continue to be held with service users and prospective service users to participate in SPPA. We will also discuss with policy makers how SPPA has a strategic role related to reporting and trading," he said.

Jeffrey added that all debt securities market players can join the SPPA service to increase liquidity, price disclosure, and more efficiency.

"It is more strategic, of course, how this SPPA can have a more strategic role in providing security and equality of transactions and reporting. Later we will discuss it to place SPPA using hubs for all EBUS transactions," he continued.

The IDX continues to be committed to increasing the role of SPPA and complementing the EBUS trading ecosystem in Indonesia so that it can increase the efficiency and effectiveness of EBUS market players.

Trading in Government Securities (SUN) through SPPA continues to increase from year to year, both in terms of trading value and market share. To date, there are 33 Indonesian EBUS market players, who have become SPPA Service Users.

This is supported by the role of SPPA which makes EBUS trading more efficient because it is directly connected to the Securities Transaction Report Recipient System (PLTE) and is more effective because it trades accommodate multilateral matching mechanisms up to bilateral negotiations.