JAKARTA (TheInsiderStories) – In order to support the fund raising through the capital market, PT Indonesia Stock Exchange (IDX) eased the requirements of debt securities listing. The new regulation will take effect as of May 20, said the agency on Thursday (05/20).
The rule related to the simplification of recording requirements, which will still pay attention to investor protection aspects. Then regulated the recording of debt securities by small and medium companies as well as the municipal bonds. The IDX also changes the provisions on the amount and maximum value of recording fees, time and payment mechanism.
The bourse also provides incentives on the listing fees for the debt securities issued by small and medium companies, green bonds, regional bonds, and for listed companies that register more than one type of debt, SUKUK and shares. In addition, IDX stipulates an additional incentives for the registration of municipal bonds by giving an annual discounting 50 percent fee in five years period from the enactment of the decree.
The agency also applies SUKUK registration provisions until the issuance of special regulations. This rule is except for the rate of sharia bond listing fees, which are lower than the listing fee of debt securities.
It also regulated the transitional period for the imposition of fees for debt securities that have been recorded prior to the enactment of this rule and new issuances that have obtained preliminary agreements before the date of enactment of this rule. For the ongoing public offering of the second and subsequent debt securities which have submitted an additional information to the IDX before of the enactment of the new rule will continue to use the recording fee rates stipulated in the existing regulation, which is proportionally calculated until December 2020.
“This regulation change is expected to expand access to funding in the capital market and encourage more debt issuers. In addition, relaxation is also expected to provide more diverse investment options for investors,” said the statement.
IDX is targeting 76 companies will offer various instruments in 2020, said the president director, Inarno Djajadi last year. The instrument consist of share, corporate bond, asset-backed securities, exchange-traded fund, real estate investment trust and infrastructure investment fund.
In this year, the bourse also optimistic 60 companies will conduct an initial public offering (IPO), higher 2019′ target around 57 companies. In 2018, as many as 58 companies have listing with fund raising of Rp16.42 trillion (US$1.09 billion). Currently, said director at IDX, IGD Nyoman Yetna, there are 22 companies will hold IPO.
He said, the regulator will continue to explore potential companies to raise funds through the stock market. Until 2022, IDX is optimistic that they will pursue 1,000 new listed companies.
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