Launching the Indonesia-Singapore Cross-Border Depositary Receipt Linkage
The financial landscape of ASEAN is significantly shifting with the official inauguration of the Indonesia–Singapore Unsponsored Depositary Receipt, known as the DR Linkage, a critical cross-border initiative designed to deepen capital market integration within the vibrant region. This pivotal milestone was publicly marked by the debut of Singapore Depositary Receipts (SDRs), which specifically represent the underlying shares of three major Indonesian blue-chip companies already listed on the Indonesia Stock Exchange (IDX).
These companies are Bank Central Asia (BBCA), Telkom Indonesia (TLKM), and Indofood CBP Sukses Makmur (ICBP).
Phillip Capital is taking the lead as the official issuer for these inaugural SDRs under the newly launched DR Linkage, which was formally introduced through a comprehensive collaborative effort between the Singapore Exchange (SGX) and the IDX.
This groundbreaking product provides an immediate, efficient channel for Singapore-based investors to easily gain exposure to these high-value Indonesian stocks directly through their local brokers, with all subsequent trades being settled conveniently in Singapore dollars during standard SGX trading hours. This dramatically increased accessibility is anticipated to be a major catalyst for boosting investment flows between these two robust capital markets, substantially supporting the broader regional goal of greater economic connectivity across the ASEAN bloc and making it simpler for all investors to access diverse opportunities abroad. The initiative is a testament to the growing demand for simplified access to key regional growth stories.
Strengthening Regional Liquidity and Investor Access through DR Linkage
The strategic collaboration to establish this Unsponsored DR Linkage is widely and correctly anticipated to deliver a multitude of benefits to both participating exchanges and their respective investor bases across Southeast Asia.
IDX President Director Iman Rachman specifically emphasized that this partnership is expected to significantly strengthen market liquidity for Indonesian securities, which in turn broadens the overall investor base for these crucial securities.
Crucially, the initiative will facilitate more seamless and cost-effective cross-border investments between the Indonesian and Singaporean markets, reducing friction for global capital seeking returns in the region.
Similarly, SGX Group CEO Loh Boon Chye justly hailed the formal launch of this linkage as a key, foundational milestone in the ongoing, multi-year efforts to bolster regional market connectivity across Southeast Asia.
He further highlighted that this specific collaboration forms a crucial part of the broader recommendations put forth earlier this year by the Equities Market Review Group, which is focused on advancing regional exchange cooperation and improving access to listed securities across all ASEAN member countries. Indonesia’s dynamic and rapidly expanding domestic market presents highly attractive opportunities for Singapore-based investors seeking growth, and SGX has indicated its clear intent to further expand this cross-border cooperation with the IDX in the near future, demonstrating an institutional commitment to enhancing the functionality and reach of the DR Linkage over the coming years. This effort underscores a commitment to harmonizing regional financial infrastructures.
Deepening ASEAN Capital Market Integration with Cross-Border Instruments
The successful introduction of the Unsponsored DR Linkage is positioned as an integral component of SGX’s comprehensive regional strategy, which is intently focused on both enhancing connectivity among ASEAN capital markets and successfully attracting significantly greater investor interest in neighboring economies.
The development of this innovative initiative is a direct and positive result of core recommendations from the Equities Market Review Group, which sought to materially improve access to the diverse listed securities across all member countries by actively facilitating the creation of innovative cross-border instruments like the SDRs.
With the recent addition of Indonesian SDRs from the three major companies, the total number of such cross-border listings now available on SGX has substantially risen to 26, a clear and quantifiable indicator of the rapidly growing investor appetite for streamlined and efficient cross-border investment instruments within the entire region.
This significant expansion signifies a massive step toward deeper and more meaningful capital market integration across ASEAN, allowing investors to diversify their investment portfolios more efficiently and readily tap into the compelling growth stories emerging from key regional economies.
The initial success and widespread adoption of this inaugural DR Linkage is now set to pave the clear way for the development of future products and deeper exchange cooperation, ultimately benefiting capital formation, driving economic integration, and securing a more connected financial future for all of Southeast Asia. The focus remains on making regional investment borderless and efficient.
