JAKARTA (TheInsiderStories) – 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. Indonesia Stock Exchange (IDX) 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.
For retail investor, the agency has set up the Indonesia Securities Investor Protection Fund as an operator to raise a number of funds to protect investor who have loss on their assets caused of fraud. The amount of reimbursement is Rp100 million for investor and Rp10 billion for custodian bank. The violation that compensate with the disgorgement funds includes pseudo and insider trading.
in June, FSA and finance ministry has signed a joint decree to support the Economic Recovery Program (ERP) based on the Government Regulation Number 23 Year 2020. The decree focused on the coordination implementation of placement of funds and interest subsidies for the companies.
“This joint agreement shall take effect as from the date of stipulation until Dec. 31, 2021,” said FSA.
The cooperation aimed to optimize the provision of information from FSA in the context of placement funds and the provision of interest subsidies, specifically in the determination participating banks, placement of funds or extension of placement of funds at the participating banks, as well provision of interest subsidies.
Last year, President Joko Widodo has signed a special rule Government Regulation Number 23 of 2020 regarding ERP. The regulation written that the government can carry out capital injection to state-owned enterprises (SOEs), placement of funds, government investment, and guarantees for the program through state expenditure.
The government prepared the ERP Funds around Rp641.12 trillion and part of the funds will used to support the consumption budget Rp172.1 trillion and an interest subsidy Rp34.15 trillion. The government also provided tax incentives with total amount Rp123.01 trillion, including stimulus reserves amounting to Rp26 trillion.
The country also allocates Rp25.27 trillion for capital injection to the SOEs. Then, provided fuel subsides in the framework of mandatory biodiesel 30 percent worth of Rp2.78 trillion. Then, a compensation payment Rp90.42 trillion for state energy firm, PT Pertamina of Rp45 trillion, food operator Perum Bulog Rp560 billion, and power producer PT Perusahaan Listrik Negara (PLN) worth of Rp45.42 trillion.
For the tourism sectors, the country budgeted Rp3.8 trillion, housing Rp1.3 trillion, and spending Rp60 trillion. There are also support for local government worth of Rp15.1 trillion, consisting of special allocation reserves Rp9.1 trillion, economic recovery up to Rp5 trillion, and loans to the regions as much as Rp1 trillion.
Moreover, guarantee of new working capital loans for MSMEs Rp6 trillion. The government also provides a bailout fund for MSMEs working capital worth of Rp19.65 trillion and a placement of funds for loan restructuring Rp87.59 trillion. Funding will be carried out through the state bond issuances purchased by Bank Indonesia through the primary market.
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