Published On: Thu, Oct 8th, 2009

The Launching of SRI-KEHATI Index

Jakarta- On June 8, 2009, Indonesia Stock Exchange (IDX) cooperates with Yayasan Keanekaragaman Hayati Indonesia (the Indonesian Biodiversity Foundation – KEHATI), an organization that is engaged with the conservation efforts and the sustainable use of Indonesia’s biodiversity resources, to launch a new Index that refers to the practices of sustainable and responsible investment (SRI) named as the SRI-KEHATI Index.

The Index is established as an additional investment guideline for investors by establishing a benchmark on stocks price of Listed Companies with excellent practices on supporting their sustainability through methods that concern about the environment, social and good corporate governance. The new Index is expected to enhance the exposure on Listed Companies that have performed their environmental and social responsibilities as well as good corporate governance.

The SRI-KEHATI Index consists of 25 stocks selected based on several categories as follow:

1. Initial Selection Criteria

  • Total Asset
    The Listed Company should have a total asset of more than Rp 1 trillion, based on its audited annual financial report.
  • Price Earning Ratio
    The Listed Company should have a positive PER.
  • Free Float Ratio
    The public share ownership should be more than or equal to 10%.

2. Rating Criteria

The stocks of Listed Companies that passed the initial selection criteria are nominated into the SRI-KEHATI Index. To decide the 25 best stocks that will be included in the Index, the Listed Companies will be rated based on the SRI-KEHATI fundamental aspects that include:

  • Environmental
  • Community
  • Corporate Governance
  • Human Rights
  • Business Behavior
  • Labor Practices & Decent Work

The base date used in the Index calculation is December 28, 2006, with an index value of 100.

In the selection of stocks included in the SRI-KEHATI Index, the KEHATI Foundation also takes into consideration the inputs from the Committee Board of SRI-KEHATI Index. Every twice a year, that is on the first Trading day on February and August, the stocks listed in the SRI-KEHATI Index will be reviewed and changed by the IDX and KEHATI Foundation.

Source: Indonesia Stock Exchange

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