KADIN Ready to be Source of New Issuers

 
Fathan Qorib, Robert Sidauruk
 
The Indonesian Chamber of Commerce (KADIN) has declared its willingness to assist the Financial Services Authority (OJK) and self-regulatory organizations (SRO) to find new issuers in the capital markets.
 
However, these efforts should be balanced with policies to provide education to businesses on the procedures, facilities, and advantages for participating in the capital markets as issuers.
 
“KADIN can be a source for the OJK to find new issuers,” said the Chairman of KADIN, Suryo Bambang Sulisto, in Jakarta on Tuesday.
 
To attract more businesses, Mr. Sulisto emphasizes the importance of providing education to businesses on Initial Public Offerings (IPO) as well as the benefits that are gained by entering the capital markets.  Mr. Sulisto believes that such education will stimulate more businesses to become new issuers.
 
“Proposed issuers should be informed of the types of incentives, fiscal and monetary facilities that are offered if they enter the capital market,” added Mr. Sulisto.
 
Another objective of the education is to inform businesses of the simplicity of entering the capital markets. Mr. Sulisto hopes that the common perception of the complexity of capital markets can be eliminated, as this has been one of the biggest obstacle for developing national capital markets.
 
If this education can be realized, Mr. Sulisto is certain that at least 50 businesses under KADIN will enter the capital markets.
 
“If intensive cooperation with the stock exchange to change the image of complexity of capital markets can be achieved, it is fair to predict 50 businesses per year will enter the capital markets,” said Mr. Sulisto.
 
Muliaman D Hadad, Chairman of the OJK strongly agrees with the urgency to break the public’s common perception of the capital markets. One of the measures that can be taken by related authorities is to provide continuous information on the capital markets.
 
“It is surely a big potential to have 50 businesses per year entering our capital markets,” said Mr. Hadad.
 
Regarding the availability of investors, Mr. Hadad argues that it is something that businesses should not be worried about. He made referenceto the increasing number of middle class people in Indonesia from 37% in 2003 to 56% in 2014 who have become potential investors in the capital market.
 
“If 10% of the citizens in the middle class become investors, it will strengthening our capital market,” explained Mr. Hadad.
 
Responding to the incentives highlighted by Mr. Sulisto, Mr. Hadad explained that such facilities have been incorporated into Government Regulation No. 77 of 2013on Reduced Income Tax Tariffs for Corporate Taxpayers in the Form of Public Companies.
 
Under this regulation, Mr. Hadad continues, companies that offer at least 40% of their shares on the stock exchange are entitled to an income tax reduction of 5%.
 
“Hence, we encourage related government officials on taxation to be fully committed implementing the regulation as to attract new issuers,” Mr. Hadad concludes.
 
(hot/kc)