KBRN, Jakarta: The Indonesia Stock Exchange (IDX) has launched a new Repurchase Agreement (Repo) trading feature on its Alternative Market Organizer System (SPPA), complementing the existing outright transaction feature on the platform.

IDX Development Director Jeffrey Hendrik said the Repo feature launch aimed to enhance the efficiency, effectiveness, and liquidity of debt securities and money market trading.

"Primarily for banks, Regional Development Banks (BPD), and Securities Companies that use the SPPA service," Jeffrey Hendrik said at the launch event on Monday, March 10, 2025, as quoted by rri.co.id.

Repo transactions are contracts to sell or purchase securities, with a promise to repurchase or resell at a predetermined time and price.

According to Jeffrey, the Repo transactions currently available on SPPA utilize debt securities, specifically government bonds (SUN), as the underlying asset.

"Repo transactions on the same platform as SUN trading will simplify the process for SPPA service users, facilitating both transaction execution and monitoring in the debt securities and money markets," said Jeffrey.

Jeffrey noted that there are currently 39 active SPPA service users with daily transactions exceeding IDR 1 trillion. These users can immediately utilize the Repo debt securities trading service on SPPA.

"We will conduct socialization, communication, and synergy with service users and regulators to optimize the expansion of SPPA service user segments," he added.

The launch of the Repo trading feature on SPPA received positive responses from service users. Shortly after the launch event, a Repo transaction of IDR 1 trillion was recorded.

Meanwhile, IDX Business Development Division Head Firza Rizqi Putra said that this year IDX will focus on increasing the number of SPPA service users, especially among Regional Development Banks.

"The target for SPPA transactions this year is at least IDR 200 trillion, derived from Repo transactions and existing fixed income cash out trades," said Firza.

In 2024, the total value of debt securities transactions on SPPA reached IDR 246.1 trillion, a 76 percent increase compared to the previous year, with a current market share of 16 percent. ***