Korea Investment & Securities Declares Cooperation with Indonesia Stock Exchange

Jung Il-moon, President: "We Will Actively Support at the Headquarters Level"
Strengthening Multifaceted Cooperation Including Promotion of ETF Trading 활성화

Korea Investment & Securities, a subsidiary of Korea Financial Group, announced on the 12th that it has agreed to mutually cooperate with the Indonesia Stock Exchange (IDX) to introduce advanced financial products and improve systems.

The memorandum of understanding was conducted as part of the ‘K-Finance Week in Indonesia 2023’ event, jointly hosted locally by seven financial companies including Korea Investment & Securities and the Financial Supervisory Service (FSS). The cooperation declaration ceremony held the previous day at the Indonesia Stock Exchange was attended by CEO Jeong Il-moon, IDX Board Chairman John Aristianto Prasetio, key IDX executives, and FSS Governor Lee Bok-hyun.

Korea Investment & Securities and IDX agreed to strengthen their partnership by exploring ways to activate the recently launched 'Shariah ETF' trading system and supporting the launch of new products and services. The Shariah ETF is an exchange-traded fund that does not invest in industries prohibited by Islamic law, such as alcohol, tobacco, and entertainment sectors.

Governor Lee Bok-hyun said, "The Indonesian capital market has grown remarkably despite the COVID-19 pandemic and the recent interest rate hike phase," adding, "I support the close cooperation and collaboration between Korea Investment & Securities, a leading securities firm representing the Republic of Korea, and IDX to accelerate the development of the capital market."

CEO Jeong Il-moon stated, "Indonesia is a country with excellent human infrastructure as well as abundant natural resources," and added, "We will contribute to the growth of the Indonesian capital market through more proactive and effective support at the headquarters level."

During this business trip, CEO Jeong also held business meetings with major local groups such as Sinarmas and Pintar to support the expansion of the local subsidiary’s business. Sinarmas is one of Indonesia’s leading conglomerates and has previously established ties through Korea Investment & Securities Indonesia (KISI) by promoting the issuance of kimchi bonds and public bonds for its affiliates. Pintar is a group that owns Indonesia’s first satellite-based private telecommunications company as a subsidiary and is currently discussing various projects with KISI.

Korea Investment & Securities entered the Indonesian market in 2018 by establishing its local subsidiary KIS Indonesia (KISI). After introducing a Korean-style online stock trading system and building a retail sales system, KISI expanded its business scope by establishing an IB division in 2020, successfully facilitating local companies’ initial public offerings and public bond issuances.

Lee Bok-hyun, Governor of the Financial Supervisory Service (first from the left), Jung Il-moon, President of Korea Investment & Securities (second from the left), and others are posing for a commemorative photo with John Aristiananto Prastio, Chairman of the IDX Board (third), and Irvan Susandi, Director of Market Affairs at IDX.