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The Indonesia Stock Exchange relaxes regulations to entice tech companies for IPOs

Written by Khamila Mulia Published on   2 mins read

Companies like GoTo, Traveloka, Tiket.com, SiCepat, and Blibli are reportedly planning to go public in Jakarta next year.

The Indonesia Stock Exchange, or IDX, will adjust the requirements for companies applying to go public. Under the new rules, profitability and net tangible assets are no longer the main financial measures for enterprises seeking ticker symbols. Other metrics may also be used as reference points, depending on each firm’s market cap. These include accumulated profit before tax, revenue, total assets, and cumulative operating cash flow.

Previously, the IDX required a minimum of IDR 100 billion (USD 7 million) in net tangible assets and at least one year of profitability to be listed on the exchange’s main board. This could be a constraint for tech companies like GoTo and Traveloka because they have yet to turn a profit. With the relaxed rules, the IDX hopes to attract more companies to offer their shares for sale locally.

“The various options for listing requirements aim to provide wider opportunities for companies—both conventional companies and companies with ‘new economy’ characteristics—so they can take advantage of the stock market,” said IDX’s corporate secretary Yulianto Aji Sadono in a statement.

This is the latest effort by Indonesian regulators to make the domestic stock exchange more attractive for tech companies. On December 7, the country’s financial authority, the OJK, announced new regulations that allow tech companies to issue multiple voting shares. Under a dual-class shares framework, certain shares carry heavier voting weights than others, allowing the holders—typically founders—to retain strategic control of the company. This is a common practice among startups in the US.

In August, Bukalapak became the first tech startup to go public in Jakarta, but the share price has been sliding ever since its debut. Bukalapak’s shares plummeted to the lowest price of IDR 426 (USD 0.30) on December 7, roughly half of its IPO price of IDR 850 (USD 0.59).

Nonetheless, IDX remains confident about the prospect of homegrown tech companies with high valuations going public in Jakarta. This class of enterprises will shore up the bourse’s total market cap and may increase the exchange’s appeal as a destination for investments.

A number of Indonesian tech companies are reportedly planning to launch initial public offerings in Jakarta next year. This includes travel tech firms Traveloka and Tiket.com, logistics company SiCepat, and e-commerce platform BliBli. Meanwhile, the country’s most valuable startup, GoTo, is said to be going public on the IDX in the first half of 2022. It may also list in New York.

As of December 20, there were 25 companies being evaluated for IPOs by the IDX. Two are from the tech sector.


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