IDX Revises New Issuers Target to 25 Companies

Indonesia Stock Exchange (IDX) revises the new issuers target for this year to 25 companies from the previous target of 35 companies. The revision is due to the incomplete administrative requirements from the issuers so they have to postpone the IPO.

Hamdi Hassyarbaini, Director of Surveillance & Compliance at Indonesia Stock Exchange, said that the target revision will be discussed at the IDX Annual General Meeting in October 2016. “Many factors are affecting the issuers to postpone the IPO, some of them have not yet prepared their financial statements or other requirements,” said Hamdi, Friday (16/9).

The decreasing JCI is by 1,69% in the last month is not caused by the issuers postponing their offering. The decreasing JCI and sales by foreign investors are affected by the volatility of global exchanges and rebalancing stock portfolios. “It is a usual thing, the factor of this certainty over the increase in The Fed’s interest rates is more dominant, in China the exchanges are also tumbling down,” said Hamdi.

The issuers are expected to wait for the repatriation cash flow of tax amnesty program for the first period that will be ended by 30th September 2016. The Directorate General of Taxation records the repatriation fund reaching IDR 26.2 trillion from asset declaration of IDR 560 trillion until 16th September 2016. The ransom tax reaches IDR 22.7 trillion or by 13.76% from the government’s target of IDR 165 trillion. (*)