Ada Pertanyaan? Hubungi Kami 
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Ada Pertanyaan? Hubungi Kami Fathan Qorib, Christina Desy
It goes without saying that to expand business operations, the availability of sufficient capital is a critical factor for any company. While there are numerous ways to raise capital, one common and attractive method is undertaking an initial public offering and converting a company into a public company.
This is particularly beneficial for companies that require large amounts of capital, as they can keep a lid on expenses by avoiding interest payments, an inevitable outcome when raising capital by bank loans. Under such restraints, the IPO strategy is highly attractive for companies which require large amounts of capital to operate, including mining companies.
While highly encouraged, the number of companies that actually go public have historically been less than estimated targets. The Indonesian Stock Exchange (IDX) targeted around 30 such companies for IPOs in 2014, but approaching the end of the year, to date only 18 companies have done so. The current best estimate for IPOs on the IDX is 25 companies by the end of 2014.
To boost the number of public companies in upcoming years, the IDX is aiming to simplify the requirements for initial public offerings (IPO). However, Ito Warsito, IDX’s President Director, stated that for now such facilities will only be granted to mining companies, especially those that are yet to start production.
For this purpose, the IDX is currently drafting a regulation that will provide mining companies are no longer required to provide their financial statements from the last three years when listing. To proceed with an IPO, mining companies that have not started production will have to prove that they are in the exploration phase and also provide their mining business feasibility studies.
This model has been used by stock exchanges in other countries which have attracted Indonesian mining companies to listed on them rather than the IDX. Once the regulation is complete for mining companies, the IDX will draft a similar regulation for the oil and gas sector.
In the meantime, BEI is also providing guidance to domestic entrepreneurs to better understand capital market mechanisms. While Mr. Warsito cannot state the exact number of future public companies though taking such actions, he is optimistic that familiarization with the capital market will at least increase the awareness of the capital market’s role in optimizing businesses.
This optimism is shared by Hoesen, IDX’s Director of Company Assessment. Moreover, Mr. Hoesen hopes that the incoming Joko Widodo and Jusuf Kalla administration will share the same spirit and start to implement concrete actions for economic growth instead of spending excessive time on discussions and discourse.
(hot/kc)
Fathan Qorib, Christina Desy
It goes without saying that to expand business operations, the availability of sufficient capital is a critical factor for any company. While there are numerous ways to raise capital, one common and attractive method is undertaking an initial public offering and converting a company into a public company.
This is particularly beneficial for companies that require large amounts of capital, as they can keep a lid on expenses by avoiding interest payments, an inevitable outcome when raising capital by bank loans. Under such restraints, the IPO strategy is highly attractive for companies which require large amounts of capital to operate, including mining companies.
While highly encouraged, the number of companies that actually go public have historically been less than estimated targets. The Indonesian Stock Exchange (IDX) targeted around 30 such companies for IPOs in 2014, but approaching the end of the year, to date only 18 companies have done so. The current best estimate for IPOs on the IDX is 25 companies by the end of 2014.
To boost the number of public companies in upcoming years, the IDX is aiming to simplify the requirements for initial public offerings (IPO). However, Ito Warsito, IDX’s President Director, stated that for now such facilities will only be granted to mining companies, especially those that are yet to start production.
For this purpose, the IDX is currently drafting a regulation that will provide mining companies are no longer required to provide their financial statements from the last three years when listing. To proceed with an IPO, mining companies that have not started production will have to prove that they are in the exploration phase and also provide their mining business feasibility studies.
This model has been used by stock exchanges in other countries which have attracted Indonesian mining companies to listed on them rather than the IDX. Once the regulation is complete for mining companies, the IDX will draft a similar regulation for the oil and gas sector.
In the meantime, BEI is also providing guidance to domestic entrepreneurs to better understand capital market mechanisms. While Mr. Warsito cannot state the exact number of future public companies though taking such actions, he is optimistic that familiarization with the capital market will at least increase the awareness of the capital market’s role in optimizing businesses.
This optimism is shared by Hoesen, IDX’s Director of Company Assessment. Moreover, Mr. Hoesen hopes that the incoming Joko Widodo and Jusuf Kalla administration will share the same spirit and start to implement concrete actions for economic growth instead of spending excessive time on discussions and discourse.
(hot/kc)