Korea Investment launches 19 single‑stock call warrants in Indonesia

Korea Investment & Securities’ Indonesian arm listed 19 single‑stock call warrants on the Indonesia Stock Exchange on 2 July, expanding its structured‑warrant portfolio to 18 underlying companies in banking, mining and oil & gas sectors【1】.

The new products include two warrants on Barito Pacific, and one each on Adaro Energy and Bank Negara Indonesia, among others. Korea Investment & Securities (KIS) entered the Indonesian market after securing an issuer licence in September 2023 and receiving exchange approval in June, according to Jangwon Seo, head of global derivatives at KIS Asia【1】.

KIS Indonesia now joins four other issuers in a market that still accounts for just 0.03 % of daily cash‑market turnover, roughly US$200 000 on average, versus about 10 % in Hong Kong’s more mature structured‑warrant market【1】. Seo says the firm’s strategy is to “grow the pie” by increasing the size of the structured‑warrant segment, leveraging its “comprehensive experience” against rivals such as RHB Sekuritas, Maybank, CGS International and KGI【1】.

Beyond the initial launch, KIS plans to introduce longer‑tenor products—some near ten months and others over a year—in September, adding 30 new warrants to the market’s existing four‑month offerings【1】. The move reflects confidence in Indonesia’s large population and a cash market twice the size of Vietnam’s, despite the current modest trading volumes【1】.

While the announcement signals KIS’s aggressive regional expansion, the broader impact on Indonesia’s derivatives landscape remains uncertain. Market participants will watch whether the longer‑tenor warrants attract sufficient liquidity and if the nascent structured‑warrant segment can evolve into a more diverse derivatives market.