JAKARTA (TheInsiderStories) – Indonesian government gives a tax incentives for the companies has plans to list its share (IPO) in the local bourse, said finance minister today (04/01). Initially, the potential issuers must pay income tax 22 percent for the IPO.
“For IPO tariffs in the form of corporate income tax are reduced by 3 percent to 19 percent in 2020 and 17 percent in 2021 for the release of 40 percent of shares and certain conditions,” said Sri Mulyani Indrawati through a video conference today.
Before the spread of COVID-19, Indonesia Stock Exchange (IDX) sees 70 companies has potential to offer their stock in this year. Until today, there are 50 companies has listed at the stock market.
“To date there are 33 firms in our pipelines. They using third quarter financial report or will be effective next year,” said the director I Nyoman Gede Yetna on Dec. 5, 2019.
To support the target, he continued, IDX will do various effort like approached the company’ owner, explore various new policy and create new board. In the near time, said the director, the bourse will also launch acceleration board for startup companies to attract more companies enter the stock market.
Beside, Yetna conveyed, the bourse will using the government support, such as tax incentives, new capital market law, and other policies to bring more companies utilizing the capital market to raise fresh funds.
While, Financial Service Authority (FSA) hope the direct investment go to Indonesian financial market could reached Rp190 trillion in this year. According the chairman Wimboh Santoso, his office will continue to work hard to attract more companies go public, issue bond and other instrument to boost the direct investment enter the market.
The ways that FSA, government and Bank Indonesia (BI) will do are create conducive market, rise the ease of doing business, produce friendly policies and incentives. Then, the government will also facilitate the licensing of companies going to IPO and also facilitate companies to get projects so the financing needs of the capital market also increase.
He stated, “The government is also multiplying supporting instruments to increase the number of companies that will issue shares or bonds.”
For next year, said IDX’ president director Inarno Djajadi, the local bourse expect 76 emissions come from new shares, bonds, mutual funds, and other emissions. he hoped five of the 76 new emissions will come from state-own enterprises companies.
He revealed, in 2020, IDX will conduct an alternative market operator, new product, and new stock exchange service. As an initial step, the self regulatory office, will develop new ETP platform for bond trading. Then, derivative products, including structured warrants, index futures, single stock future and optimization of ETF trading.
The development of new services is carried out through the development of an electronic public offering system (e-IPO), the development of Securities Lending and Borrowing, the development of new industry classifications, enhancing trading system technology and increasing efficiency of developing trading systems.
Beside, Djajadi said, the bourse also continues to support the strengthening of the investor. To support the number of new investor at the bourse, IDX developed SLX services with the Indonesian Clearing and Guarantee Corporation, developed securities funding for investors through Indonesian Securities Funding, and expanded members’ business expansion through regional securities companies.
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