Indonesia’s Issuers Raised Funds US$1.35B Amid the COVID-19

Until March, 2020, the Financial Services Authority recorded 13 issuers has raised funds Rp21.55 trillion (US$1.35 billion) amid the COVID-19 outbreak - Photo: Special

JAKARTA (TheInsiderStories) – Until March, 2020, the Financial Services Authority (FSA) recorded 13 issuers has raised funds Rp21.55 trillion (US$1.35 billion) amid the COVID-19 outbreak. The agency also reported there are 61 issuers in the pipeline with total indicative offers Rp28.8 trillion.

In this year, the regulator set an emissions targets Rp200 trillion (US$14.29 billion) in the local bourse and 70 issuer become a listed company in 2020. In 2019, 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 said on Jan. 16.

Earlier, IDX’ director I Nyoman Gede Yetna said, there are 33 firms in the 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.

In addition, Santoso 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.

Since February, the FSA has issued various stimulus policies in the banking sector, capital market and non-bank financial industry which is expected to be help the industries counter the coronavirus impact.  so that it can encourage the optimization of the performance of the financial services industry in particular intermediation function, maintain financial system stability, and support economic growth.

US$1: Rp16,000

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