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IDX: Foreign Companies Fascinated Listing in Indonesia

Indonesia Upstream Fiscal and Regulatory Report

Tito Sulistyo - Photo by TheInsiderStories

JAKARTA (TheInsiderStories) – President Director Indonesian Stock Exchange (IDX) Tito Sulistyo told press on Tuesday (20/02) several foreign companies have expressed their interest to list their shares at the bourse. Most of these companies are engaged in the mining, plantation and retail sectors.

According to him, these companies seek to hold their initial public offering (IPO) for the purposes of restructuring, funding needs, and spreading their shares to the people of Indonesia.
Based on his report to President Joko Widodo, 42 foreign companies recorded get revenues from its operating business in Indonesia but listed outside Indonesia. He admitted has met eight foreign companies and  the average they want listing in the local bourse.

He added that the average company are listed in Singapore, U.S, Malaysia, Hong Kong and Sydney stock exchange. However, according to him in order to realize the plan they must form a local company.

There are also, Tito said, an Indonesian company listed abroad and some have a holding company of foreign companies. The trick to list in the country, according to him, can be through the Indonesian Deposit Receipt or list its sub-holding company.

“The rules are not a problem to them go IPO in Indonesia,” he said by adding the Indonesian Deposit Receipt scheme by buying and selling the shares back to back by the company that will list back to back shares in the IDX.

This year, IDX targeting to list 35 companies. So far two companies has listed their shares at the bourse.
Email: linda.silaen@theinsiderstories.com