IDX Office at Central Jakarta

JAKARTA (TheInsiderStories) – 50 companies have been listed on the Indonesia Stock Exchange (IDX) during 2018. This number exceeded the bourse’s target as many as 35 companies and was the highest number since the privatization of the stock exchange authority in 1992.

The self regulatory body (SRO) is optimistic that the number of listed companies will continue to grow because there are 14 potential companies in the IDX’ listing pipeline.

For next year, the regulator set the target as many as 35 companies are going to list its shares on IDX. This un-increased target is made based on next year macro-assumption, the official said. The bourse also has been anticipating political influence for the markets in 2019.

In the IDX extraordinary shareholders meeting on Oct.25, targeted 2019’s daily stocks transaction for Rp9 trillion (US$600 million), an idle target compared to 2018.

To achieve next year’s outlook, said the president director Inarno Djayadi after the extraordinary meeting, IDX will develop services and new products. Besides, he added, the bourse will launch several reference indices for investment products development.
“We will develop derivative products based on sovereign debt instruments, also derivative products for the equity market include structured warrants, single stock futures, and futures index,” he stated.

Then, the self regulatory organization will maintain effort in increasing investors by easing regulation, application system, infrastructure, and doing socialization. Recently, there are more than 800.000 investors registered in the stocks exchange.

Among the stagnant targets established, IDX seemed pessimistic in getting better income. IDX eyes Rp1,13 trillion’s revenues in 2019, an increase by 11.67 percent from this year’s target. The 2019’s net profit is estimated at Rp136.62 billion.

Its also reported at the weekly report, during 2018 there were 79 issuance of bonds and Sukuk with a total emission value of Rp97.24 trillion (US$6.61 billion), Government bonds worth of Rp173.78 trillion, Exchange Traded Fund of 8 Investment Contracts Collective with amount of Rp53.9 billion, and three Asset Backed Securities with a total initial issuance of Rp3.62 trillion.

It said, the achievement is inseparable from the government’s support to create a conducive economic climate, as well as the support of the Financial Services Authority to spur companies to utilize the capital market in business development.

IDX also encouraged increase in the number of listed companies by interacting with listed companies and visiting pockets of entrepreneurs in various regions in Indonesia.

One of the body’s commitments to improve public understanding of funding options for companies are through the capital market education and going public in the form of go public workshops and one-on-one meetings.

Another IDX commitment to increase the number of listed companies and securities issuance on the IDX is by drafting new regulations to open opportunities for startups and companies with small and medium scale assets through the launch of acceleration boards.

IDX also took the initiative to add new regulations to simplify the process of recording companies in the minerals and coal mining, plantations, renewable energy, and oil and gas mining sectors.

The SRO hopes that more companies can become part of the capital market by listing securities on the IDX. With the increasing number of companies listed on the IDX, it is expected that there will be more choices of investment instruments for investors, accelerating company growth and boosting Indonesia’s economic growth.

US$1: Rp14,700

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