JAKARTA (TheInsiderStories) – The Indonesia Stock Exchange launched the Jakarta Stock Industrial Classification (JASICA) to implemented the new industrial classification (IDX-IC) starting Monday (01/25). With this implementation, the grouping of shares will increase to 12 sectors with 35 sub-sectors, 69 industries, and 130 sub-industries from previously using nine sectors and 56 sub-sectors.
The 12 new sectors are the energy, raw material, industry, primary consumer, non-primary consumer, health, financial, property and real estate, technology, infrastructure, transportation and logistics, also an investment product.
The director, Laksono Widodo, explained the classification principle based on market exposure. In addition, the classification structure is designed to have four classification levels, namely sector, sub-sector, industry, and sub-industry.
He conveyed, that the new classification system is expected to make it easier for institutional investors to carry out a more accurate and detailed analysis related to more relevant sectoral comparisons, especially regarding investment strategies. With this new classification system, he hope that the calculation of valuations will be fairer.
Periodic evaluation of the classification for each listed companies will be conducted annually starting from April and will be effective in July. While, for newly listed companies, the classification determination will use the prospectus document and will be effective since the company listed on the IDX.
The bourse manager also launched 11 sectoral indices on IDX-IC with the new index of technology and health sectors. In detail, the 11 sectors include the energy sector (IDXENERGY), the raw goods sector (IDXBASIC), the industrial sector (IDXINDUST), the primary consumer goods sector (IDXNONCYC), the non-primary consumer goods sector (IDXCYCLIC).
Furthermore, the health sector (IDXHEALTH), financial sector (IDXFINANCE), property and real estate sector (IDXPROPERT), technology sector (IDXTECHNO), infrastructure (IDXINFRA) and transportation & logistics (IDXTRANS). The other sector is Listed Investment Product Sector, which is included in 12 sectors, does not have a sectoral index.
Earlier, chairman of the Financial Service Authority (FSA), Wimboh Santoso, optimistic total fundraising in Indonesian capital market penetrates to Rp180 trillion (US$12.76 billion) in this year. The amount higher than 2020′ realizations amounted to Rp118.7 trillion with 53 issuers.
Since the beginning of the pandemic, the regulator had issued various policies to boosted the companies seeking fund through the capital market through the local bourse and other related institutions also gave a various stimulus to the publicly listed companies and securities house. As an example IDX has cut the initial listing dee up to 50 percent for the new issuer.
Then, Indonesian Clearing and Guarantee Corporation prepared a stimulus in the form of relaxation of the guarantee fund by relief of the guarantee deposit to the clearing member. The amount of relaxation is set at 0.005 percent of the value of each exchange transaction on equity. Previously the amount was 0.01 percent.
Then, PT Indonesian Central Securities Depository gave a fee relief in the form of waiver of the e-Proxy usage fee and the initial registration fee for the securities issued through equity crowd-funding. The agency also reduced the annual registration fee by 50 percent on the securities issued through equity crowd-funding.
The securities depository office also provided a stimulus to securities house and custodian banks in the form of an alternative connection networks using virtual private networks (VPN) and adjusting safekeeping fees from previously 0.005 percent to 0.0045 percent per year.
Other stimuli are for the mutual fund industry in the form of alternative network connections using VPN, adjusting the monthly cost of registered investment products, and waiving the registration fee for investment products. FSA itself plans to revise the minimum values of public offering in the capital market from Rp1 billion to Rp5 billion and the core capital of the managers from Rp2.5 billion to Rp15 billion.
The new regulation is expecting will be able to encourages more fundraising in the stock market.
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