JAKARTA (TheInsiderStories) – Indonesia Stock Exchange (IDX) will introduce Electronic Bookbuilding (e-Bookbuilding) to spread the investor-based for initial public offering (IPO), said one official on Thursday (23/08).
According to director of IDX I Gede Nyoman Yetna, the program is an IDX project with other self-regulatory organizations (SRO) like Indonesian Central Securities Depository and Indonesian Clearing and Guarantee Corporation.
At present, he added, the supply of the IPO‘ shares does exist for certain investors and with e-Bookbuilding is expected could reached retail investors more easily. Unfortunately, Yetna hasn’t told when the plan for e-Bookbuilding to be implemented.
Commenting on the plan, Muhammad Nafan Aji, Analyst of Binaartha Sekuritas said that the e-Bookbuilding could bring a transparency more better for the investors. He also expect the program will have a positive effect for the retail investors.
Indonesian bourse need to prevent the domestic market from global impact by produces more friendly policies to the investors. As we know lot of foreign investors pulled out from the emerging market amid the financial crisis at the region.
Moody’s Investors Service has warned that the currency depreciation witnessed across Asia Pacific in recent months poses risks to the region’s emerging and frontier markets. Sovereigns with high external financing needs are most exposed.
Most currencies in Asia Pacific have depreciated against the US dollar this year, with the largest depreciations in the key Asian emerging markets of India (Baa2 stable), Indonesia (Baa2 stable) and the Philippines (Baa2 stable).
“In Indonesia and the Philippines, currency pressure will exacerbate already weak debt-affordability metrics. If associated with capital outflows, tighter financing conditions will have wider repercussions for the balance of payments.” says Anushka Shah, a Moody’s Vice President and Senior Analyst.
“By contrast, India’s low dependence on foreign currency to fund debt burdens limits the risk of a weaker currency transmitting into weaker debt affordability,” adds Ms Shah.
Moody’s points out that the extent of depreciation seen this year has been less pronounced than during the taper tantrum in 2013. Also, ahead of the recent financial market volatility, most large emerging markets in APAC have accumulated size-able reserve buffers, affording some policy space.
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