Indonesia Stock Exchange launches repo transactions on SPPA
12 March 2025 Indonesia
Image: Mujibur_Rohman/stock.adobe.com
The Indonesia Stock Exchange has launched a new feature of repo transactions on its Alternative Market Operator System (SPPA).
Through this move, Bursa Efek Indonesia (BEI) aims to improve the efficiency, effectiveness, and liquidity of debt securities and money market trading by banks, regional development banks (RDBs), and securities companies.
SPPA service users can now use the facility to conduct repo transactions by underlying debt securities, especially sovereign debt instruments (SUN).
This new repo transactions feature will complement the outright transaction feature (outright sale), which is currently available on the SPPA platform.
Jeffrey Hendrik, development director at BEI, explains that repo transactions with underlying SUN on the same platform as SUN buying and selling transactions will make SPPA a pool of liquidity for debt securities trading in Indonesia.
This will make it easier for banks, RDBs, securities companies, and brokers who are SPPA service users to monitor the debt securities market and money market, he says.
SPPA repo is targeted to become a major part of Indonesia’s financial market infrastructure in accordance with the digitalisation strategy implemented by the central bank, Bank Indonesia.
There are currently 39 SPPA service users who can directly utilise the debt securities repo transaction service starting early this year, which is an increase of 95 per cent compared to when it was first implemented, and this number is expected to increase further, according to BEI.
Through this move, Bursa Efek Indonesia (BEI) aims to improve the efficiency, effectiveness, and liquidity of debt securities and money market trading by banks, regional development banks (RDBs), and securities companies.
SPPA service users can now use the facility to conduct repo transactions by underlying debt securities, especially sovereign debt instruments (SUN).
This new repo transactions feature will complement the outright transaction feature (outright sale), which is currently available on the SPPA platform.
Jeffrey Hendrik, development director at BEI, explains that repo transactions with underlying SUN on the same platform as SUN buying and selling transactions will make SPPA a pool of liquidity for debt securities trading in Indonesia.
This will make it easier for banks, RDBs, securities companies, and brokers who are SPPA service users to monitor the debt securities market and money market, he says.
SPPA repo is targeted to become a major part of Indonesia’s financial market infrastructure in accordance with the digitalisation strategy implemented by the central bank, Bank Indonesia.
There are currently 39 SPPA service users who can directly utilise the debt securities repo transaction service starting early this year, which is an increase of 95 per cent compared to when it was first implemented, and this number is expected to increase further, according to BEI.
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