Bursa Malaysia and IDX sign MoU to collaborate on Islamic financial markets

A view of the Indonesia Stock Exchange building in Jakarta, Indonesia June 23, 2016. REUTERS/Iqro Rinaldi FOR EDITORIAL USE ONLY. NO RESALES. NO ARCHIVES

KUALA LUMPUR: Bursa Malaysia Bhd and the Indonesia Stock Exchange (IDX) on Tuesday signed a 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.

In a statement, Bursa Malaysia said this followed 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.

“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,” said chief executive officer Datuk Seri Tajuddin Atan.

President director of IDX, Tito Sulistio, said the cooperation was a further step taken for the benefit of both countries in order to be established as a leading Islamic capital market hub globally. 

“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,” said Tito.

The MoU signing took place at the 12th World Islamic Economic Forum at the Jakarta Convention Centre, Indonesia.

Indonesia is Malaysia’s seventh largest trading partner and the third largest among the Asean countries as of 2015. - Bernama