Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Ari Pramuditya, ANT
Indonesian Stock Exchange. Photo by: RES
In order to facilitate an influx of fresh capital, the Indonesian Stock Exchange (IDX) has proposed that the Initial Public Offering (IPO) stages for State Owned Enterprises (Badan Usaha Milik Negara – BUMN) be trimmed. Tito Sulistio, President Director of the IDX, has stated that this idea has been communicated to the House of Representatives (House) in a bid to streamline the BUMN IPO process, making it both speedier and more efficient.
According to Mr. Sulistio, one of the proposed solutions for speeding up the IPO process involves amending Law No. 19 of 2003 on BUMN (BUMN Law). Sulistio added that by 2016, the IDX is hoping that 35 companies will engage in IPOs, including BUMN and their subsidiary companies. At present, the IDX is undertaking IPO processes for five companies.
“We hope that the revision of the BUMN Law can be incorporated into the 2016 National Legislation Program (Prolegnas). Commission XI of the House has confirmed that it will assist with this plan,” stated Mr. Sulistio in Jakarta on Monday, 4 January 2016.
Sharing similar views, Rini Soemarno, Minister for BUMN, will be encouraging BUMN to enter the capital market. This support is being given in order to expand the BUMN’s sources of funding, so that they are no longer reliant on state-capital participation (Penyertaan Modal Negara – PMN) funding.
“The focus is to create BUMN that are more financially independent and which are not reliant on PMN funds. In the future, PMN funds will only be dispersed if there are specific assignments from the government,” explained Mrs. Soemarno.
Currently, the BUMN Ministry is conducting reviews of a number of BUMNs which, it believes, have the potential to enter the capital market through the IPO mechanism. In addition, the BUMN Ministry is also looking to increase the amount of BUMN shares which are already listed on the stock exchange.
One of the BUMNs currently being targeted for the trading floor is PT Indonesia Asahan Aluminium (Inalum). According to Mrs. Soemarno, Inalum is working on several projects which can be further developed in the future. “Inalum has number of potential downstream projects,” Soemarno stated.
Meanwhile, the Chairman of the Board of Commissioners at the Financial Services Authority (Otoritas Jasa Keuangan – OJK), Muliaman D. Hadad, has asserted that the capital market can be used as a place to mobilize funds for both corporations and BUMN. It is hoped that these funds will ultimately strengthen corporate governance and increase public trust.
Mr. Hadad added that the OJK would also improve supervision levels in order to maintain the credibility of the capital market in the eyes of investors. Additionally, the OJK will also be focusing its energies upon anticipating regional integration as the ASEAN Economic Community gets underway this year.
“The capital market has become an alternative long-term source of financing. The market will be focusing on increasing the number of issuers, as well as on expanding the number of local investors through education and the dissemination of information,” Mr. Hadad concluded.
(rfs/sp)
Ari Pramuditya, ANT
Indonesian Stock Exchange. Photo by: RES
In order to facilitate an influx of fresh capital, the Indonesian Stock Exchange (IDX) has proposed that the Initial Public Offering (IPO) stages for State Owned Enterprises (Badan Usaha Milik Negara – BUMN) be trimmed. Tito Sulistio, President Director of the IDX, has stated that this idea has been communicated to the House of Representatives (House) in a bid to streamline the BUMN IPO process, making it both speedier and more efficient.
According to Mr. Sulistio, one of the proposed solutions for speeding up the IPO process involves amending Law No. 19 of 2003 on BUMN (BUMN Law). Sulistio added that by 2016, the IDX is hoping that 35 companies will engage in IPOs, including BUMN and their subsidiary companies. At present, the IDX is undertaking IPO processes for five companies.
“We hope that the revision of the BUMN Law can be incorporated into the 2016 National Legislation Program (Prolegnas). Commission XI of the House has confirmed that it will assist with this plan,” stated Mr. Sulistio in Jakarta on Monday, 4 January 2016.
Sharing similar views, Rini Soemarno, Minister for BUMN, will be encouraging BUMN to enter the capital market. This support is being given in order to expand the BUMN’s sources of funding, so that they are no longer reliant on state-capital participation (Penyertaan Modal Negara – PMN) funding.
“The focus is to create BUMN that are more financially independent and which are not reliant on PMN funds. In the future, PMN funds will only be dispersed if there are specific assignments from the government,” explained Mrs. Soemarno.
Currently, the BUMN Ministry is conducting reviews of a number of BUMNs which, it believes, have the potential to enter the capital market through the IPO mechanism. In addition, the BUMN Ministry is also looking to increase the amount of BUMN shares which are already listed on the stock exchange.
One of the BUMNs currently being targeted for the trading floor is PT Indonesia Asahan Aluminium (Inalum). According to Mrs. Soemarno, Inalum is working on several projects which can be further developed in the future. “Inalum has number of potential downstream projects,” Soemarno stated.
Meanwhile, the Chairman of the Board of Commissioners at the Financial Services Authority (Otoritas Jasa Keuangan – OJK), Muliaman D. Hadad, has asserted that the capital market can be used as a place to mobilize funds for both corporations and BUMN. It is hoped that these funds will ultimately strengthen corporate governance and increase public trust.
Mr. Hadad added that the OJK would also improve supervision levels in order to maintain the credibility of the capital market in the eyes of investors. Additionally, the OJK will also be focusing its energies upon anticipating regional integration as the ASEAN Economic Community gets underway this year.
“The capital market has become an alternative long-term source of financing. The market will be focusing on increasing the number of issuers, as well as on expanding the number of local investors through education and the dissemination of information,” Mr. Hadad concluded.
(rfs/sp)