Initial public offering (IPO) at the Indonesia Stock Exchange (IDX) as of Tuesday (7/19) has just reached 28.56% or 10 new issuers out of the 35 issuers targeted this year. However, realistic IPO target that the IDX could achieve is predicted to only be about 25 new issuers.
IDX indeed has yet to revise its IPO target but statement from IDX’s management implies that it will not. “Conservatively, those which have been ready for some time are 25 companies. Those companies have actually processed IPO permission,” Samsul Hidayat, IDX’s Corporate Evaluation Director, said. Tax amnesty policy which will draw a trillion rupiah of repatriated funds has become IDX’s hope to achieve its optimistic target of 35 new issuers. It is because impact from tax amnesty will be apparent by the end of third quarter to fourth quarter after the policy is in effect.
To attract more companies conducting IPO, IDX is exploring the possibility of giving discounted listing fee. “We are proposing this to the Financial Services Authority (FSA). After State Equity Participation (PMN) to several SOEs is already disbursed, the regulation will be signed,” IDX’s President Director Tito Sulistio explained. (*)
Add Comment