Indonesia Stock Exchange (IDX) reported 16 companies ready to hold an initial public offering (IPO) in the second semester of 2019 - Photo by Indonesia Stock Exchange

JAKARTA (TheInsiderStories) – Indonesia Stock Exchange (IDX) reported 16 companies ready to hold an initial public offering (IPO) in the second semester of 2019. The companies engaged in various industry, said IDX’ director I Gede Nyoman Yetna in an official statement last weekend.

Based on these data, the companies has consider to go IPO are mining company PT Dana Brata Luhur trade services company PT Itama Ranoraya, property companies such as PT Bhakti Agung Propertindo, PT Dynatal Tatapersada Sampurna, PT Nusantara Almazia, and PT Alamanda Investama.

Then, from the basic industrial sectors like PT Optima Prima Metal Sinergi, Saraswanti Anugerah Makmur, PT Trinitan Metals and from various industry company namely PT Gaya Abadi Sempurna, PT Ifishdeco, and the service company PT Meka Adipratama.

He said, one company now in the process to list its shares on August 20 engaged, PT Kencana Energi Lestari. The power producer offered 977.68 million shares or as much as 25 percent of issued and paid-up capital with indicative price ranges Rp250 to Rp420 each. The company targeting to raise fresh funds up to Rp410 billion (US$28.87 million).

Until August 2, said Yetna, 32 companies has been listed at the IDX, bringing the total number of listed companies to 649 companies with market capitalization Rp7,205 trillion. There are also six new Exhchane Trade Funds, two Real Estate Investment Funds, and one DInfra.

Left one quarter, IDX’ President Director Inarno Djajadi remains optimistic the number of new issuers reached 57 companies in this year, same as the number of companies that IPO in 2018.

“Hopefully we can achieve more than 57 new issuers, last year we were 57 listed companies,” he said by adding until first week of August the average daily transaction Value worth of Rp9.74 trillion.

Indonesian government continues to encourage more companies to take floor on the stock market through incentives and tax facilities. Chief of Regulation Section Directorate General of Taxation Riztiar Arinta, the provision of tax incentives aims to increase the role of capital markets in the Indonesian economy and to encourage transparency and corporate governance, including in terms of tax compliance

The government, he said, provides incentives for reducing corporate income tax for companies that are on the stock exchange with more than 40 percent of shares distributed in the stock market. He continued, since 1983, the issuer can get incentives in the form of reducing corporate income tax by 5 percent of the total that should be paid.

In addition, the government also provides incentives for shareholders whose listed company shares by give transaction tax of 0.1 percent of the transaction value +0.5 percent of the IPO value for the founding shareholders or 0.1 percent of the transaction value for other shareholders.

Arinta explained, companies going public get many benefits, among others the reduction in the corporate income tax rate by 5 percent, from the 25 percent currently in force. He added, “The condition is that companies must trade at least 40 percent of their shares and a minimum of 300 shares owned.”

Second, the final income tax on the sale of shares on the exchange is only 0.1 percent of the transaction value, plus 0.5 percent of the value of the shares for the sale of the shares of the founder. Third, the calculation of income tax installment article 25 can also be done based on quarterly reports in accordance with business conditions.

“For companies that are on the market, they can use book value in order to spin off, or expand their business,” he continued.

US$1: Rp14,200

by Linda Silaen, Email: linda.silaen@theinsiderstories.com