SGX launches Indonesia depository receipts featuring blue-chip listcos
The bourse, which currently has 26 depository receipts listed, plans to expand its offerings to include Vietnam companies next year
[SINGAPORE] Local investors can now gain simplified access to three Indonesian blue-chip companies – Bank Central Asia, Telkom Indonesia and Indofood CBP – through newly listed Singapore Depository Receipts (SDRs) on the Singapore Exchange (SGX).
Issued by Phillip Securities, the Indonesia SDRs give investors beneficial ownership in shares of these three companies listed on the Indonesia Stock Exchange (IDX). The companies are constituents of the benchmark IDX30 Index, which tracks Indonesia’s 30 largest stocks.
SDRs are unsponsored depository receipts that provide holders with a beneficial interest in an underlying security. Through them, investors in Singapore can easily access Indonesian-listed securities using their local brokers, trading in Singapore dollars during SGX market hours.
The Indonesia-Singapore Depository Receipt (DR) Linkage announced on Thursday (Oct 16) seeks to enhance visibility of Indonesian-listed companies among Singapore investors. This follows a 2024 partnership agreement between SGX and IDX.
“The launch of this DR Linkage with IDX is a significant milestone in our journey to strengthen regional connectivity,” said SGX chief executive officer Loh Boon Chye.
He added that collaborations with other exchanges are part of a broader set of recommendations announced earlier this year in February by the Equities Market Review Group, established by the Monetary Authority of Singapore to strengthen the local equities market.
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Growing demand
Retail investors have been a key driver of demand for SDRs, noted Serene Cai, head of securities trading at SGX.
“In terms of the client adoption, we have seen this whole product class pick up in investor interest,” she told The Business Times.
Cai said trading turnover for SDRs hit a record high in September 2025, reaching an average daily traded value of about S$16 million. This represents a more than 30-fold increase since the product was introduced three years ago.
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Assets under management in SDRs have also grown rapidly to around S$200 million, with the majority held by retail investors.
“We do see quite continuous growth in retail participation for this particular product class when it comes to turnover as well,” added Cai.
The roll-out of Indonesian SDRs follows the recent introduction of Hong Kong and Thailand SDRs, which include 10 Thai blue-chip companies and 13 from Hong Kong, such as Siam Cement, Alibaba and Xiaomi. This addition brings the total number of SDRs listed on SGX to 26, underscoring growing investor interest in regional markets.
Since the launch of Thai SDRs two years ago, the concept has steadily gained traction, with SDRs now trading as a recognised asset class, Cai told BT.
The partnership between SGX and IDX represents the second exchange-level DR cooperation in Asean, building on the success of the Thailand-Singapore DR Linkage.
SGX said this initiative supports the commitment of six major stock exchanges across Asean to regional DR collaboration, and promotes the region as an attractive investment hub. These exchanges are Bursa Malaysia, IDX, SGX, the Philippine Stock Exchange, the Stock Exchange of Thailand (SET) and the Vietnam Exchange (VNX).
SDRs help to enhance collaboration among these exchanges, strengthening connectivity within the region, Cai added.
On the broader topic of establishing a unified Asean exchange, she explained that there were previous efforts to integrate regional markets, including exploring a “stock connect” initiative across exchanges.
However, she sees SDRs as providing SGX with a practical way to collaborate more closely, while maintaining the integrity of individual markets and their respective regulations, without the need to fully harmonise rules across countries. She added that, at present, the concept of a single Asean exchange is not actively being considered.
With regard to the latest SDRs, Cai said Indonesia is one of the largest economies in the region, with strong growth prospects, ongoing reforms and market stimulus. Because of this, Indonesia has consistently been a top consideration for investors.
The three companies selected, she added, were chosen to represent sectors familiar to the domestic market.
“They were chosen precisely because they were able to benefit from domestic growth,” said Cai.
She said Bank Central Asia, Indonesia’s largest bank, and Telkom Indonesia, the country’s leading telecommunications provider, are poised to gain from digital transformation and increased technology adoption.
Meanwhile, Indofood CBP, the company behind the popular Indomie noodles, reflects a consumption-driven growth story.
Based on investor demand, Cai said SGX plans to add more Indonesian-listed companies from various sectors to its SDR line-up over time.
On reciprocal arrangements, Cai noted that there has already been progress with other exchanges listing Singapore-linked securities. The SET, for instance, currently lists DRs on blue-chip companies such as Singtel, Singapore Airlines and ST Engineering.
However, she added that broader two-way arrangements will take time, as each domestic exchange and regulator must first recognise DRs as a valid product class.
In Indonesia’s case, she sees progress on this front as largely dependent on its regulatory environment.
Upcoming pipeline
Cai noted that in the coming year, SGX is exploring ways to further expand the jurisdictions available for SDRs. This could include both developed markets, which are currently being studied, as well as other Asean markets, such as Vietnam.
SGX has engaged in discussions and knowledge-sharing sessions with onshore regulators and the VNX, to explore how its listed companies can be listed as SDRs in Singapore in the near future or by next year.
“SDRs are going to be very much about investor demand and bringing the world to Singapore to be traded locally here in SGD,” she said.
While SGX has not set a specific target for the number of listings by 2026, Cai said the bourse plans to add more names within existing exchanges, such as SET and IDX, as well as expand into new jurisdictions.
She added that jurisdictions or companies would be selected based on where investors see opportunities or express interest.
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