JAKARTA (TheInsiderStories) – Indonesian regulator, Financial Services Authority (FSA) targeting total emissions in the capital market to reach Rp200 trillion (US$14.29 billion) and 70 issuer become a listed company in 2020, said the chairman today (01/16). Last year, public offering at the local bourse recorded Rp161 trillion and 60 firms listed at the Indonesia Stock Exchange (IDX).
“We are still quite optimistic because last year the public offering in the capital market is Rp161 trillion with 60 companies listed. Our JCI (Jakarta Composite Index) volatility is also quite maintained moved between 6,000 – 6,200,” the chairman, Wimboh Santoso remarked at the Annual Meeting of Financial Industry in Jakarta.
Earlier, IDX’ director I Nyoman Gede Yetna said, there are 33 firms in the agency’ pipelines. In term of type of industry, the companies are derived from various industries which dominated from property, real estate and construction sector around nine companies. Then, trade, service and investment sector about eight companies. and others from consumer goods industry, agriculture, mining industry sectors.
The 17 companies ready to go IPO until first quarter of 2020 are PT Ifishdeco Tbk, PT Repower Asia Indonesia Tbk, PT Hoppor International Tbk, PT Indonesia Fibreboard Industry Tbk, PT Diamond Food Indonesia Tbk, PT Agros Yasa Lestari Tbk, PT Agro Yasa Lestari Tbk, PT Putra Rajawali Kencana Tbk, PT Morenzo Abadi Perkasa Tbk, PT Putra Mandiri Jembar Tbk, PT Esta Multi Usaha Tbk, PT Nara Hotel International Tbk, PT Royalindo Investa Wijaya Tbk, and PT Prima Multi Usaha Indonesia Tbk
Then, PT Tourindo Guide Indonesia Tbk, PT Galva Technologies Tbk, PT Bank Amar Indonesia Tbk, PT Alamanda Investama Tbk, PT Graha Belitung Utama Tbk, PT Era Graharealty Tbk, PT Cisadane Sawit Raya Tbk, PT Pratama Widya Tbk, PT Karya Bersama Anugerah Tbk, PT Diamond Citra Propertindo Tbk, PT Perintis Triniti Properti Tbk, PT Era Mandiri Cemerlang Tbk, PT Cahaya Bintang Medan Tbk, PT Andalan Sakti Primaindo Tbk, PT Aesler Grup Internasional Tbk, PT Batulicin Nusantara Maritim Tbk, PT Lancartama Sejati Tbk, and PT Makmur Berkah Amanda Tbk.
In addition, Wimboh stated, his office will continue to work hard to attract more companies use the capital market to fulfill their needs, through IPO, bond issuance, and other instrument. 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, he asserted, the government will also facilitate the licensing of companies going to initial public offering and also facilitate companies to get projects so the financing needs of the capital market also increase.
“The government is also multiplying supporting instruments to increase the number of companies that will issue shares or bonds,” said the chairman.
While, 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, 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.
As November 2019, total commercial insurance premiums were amounted to Rp261.65 trillion, or grew at 6.08 percent compared to last year, with life insurance premium worth of Rp169.86 trillion and premium of general insurance/reinsurance amounted to Rp91.79 trillion Rupiahs, indicating a 20.07 percent increase.
While the risk-based capital (RBC) of the general insurance and life insurance industries stood at 329.3 percent and 725.4 percent, respectively, far above the 120 percent of threshold, said Santoso.
“However, we realize the insurance industry needs more serious attention to improve governance, prudence and performance. Therefore, OJK has announced nonbank financial industry reforms in 2018 which include improvements in the application of risk management, better governance and investment performance reports to the authorities and the public,” he noted.
FSA, Santoso said, will issue risk management and governance guidelines as well as the report format and more stringent supervision of investment quality, along liquidity and solvency projections. This year, he predicted, the intermediary performance of finance companies was estimated to grow around 4.5 percent.
Then, the credit risk of finance companies was also seen stable and low, with its Non-Performing Financing ratio stood at 2.52 percent and Gearing Ratio 2.63 times.
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