The Indonesia Stock Exchange (IDX) and Bursa Malaysia Berhad have announced the signing of the second Memorandum of Understanding (MoU) to undertake a joint study to explore potential areas for collaboration, particularly in the development of the Islamic Capital Market in Malaysia and Indonesia.
This follows an MoU which was signed between then Jakarta Stock Exchange and Kuala Lumpur Stock Exchange in 1996 on communication and sharing of information, which was last renewed in 2006.
Datuk Seri Tajuddin Atan, Chief Executive Officer of Bursa Malaysia said:
I am pleased to deepen our collaboration and existing working relationship with IDX. This MoU serves to formalise the earnest intent of both exchanges to collaborate in enriching offerings in our capital markets, and broadening the usage and availability of Islamic liquidity and products.
Leveraging on our leadership in the Islamic capital market, I am optimistic that the collaboration could fuel the growth of the Islamic capital market for both Malaysia and Indonesia, be it via product development or market promotion.”
Mr. Tito Sulistio, President Director of IDX, added:
This cooperation is a further step taken for the benefit of the two countries in order to establish Indonesia and Malaysia as a leading Islamic capital markets hub in the world. Through this partnership, we hope IDX and Bursa Malaysia can continue to develop instruments and products of Islamic capital markets together as a reference at the global level.”
Indonesia is Malaysia’s 7th largest trading partner and the 3rd largest among the ASEAN countries as of 2015. This interchange has created an environment of growing business opportunities between the two countries. With a combined total population of almost 300 million, capital market players in both countries, especially retail and institutional investors, have recognised the potential benefits in cross-border capital market collaboration.