TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Financial authority to allow IPO submissions at local offices
Change Size
Indonesia Stock Exchange (IDX) president director Tito Sulistio (left), Financial Services Authority (OJK) commissioner Nurhaida (center) and Tax Office spokesperson Hestu Yoga, speak to the reporters at the IDX building. (JP/Anton Hermansyah)
T
he Financial Services Authority (OJK) will allow initial public offering (IPO) registration statements to be submitted to its local offices in a bid to encourage more local companies to list their shares on the Indonesia Stock Exchange (IDX).
"Legally, there is no regulation that prohibits such a submission," OJK commissioner for capital market supervision Nurhaida told a media briefing in Jakarta on Monday. "I have talked with our team and they're ready to receive the submissions starting tomorrow."
Currently, local companies wishing to go public have to submit their applications to the OJK's headquarters in Jakarta. Such a requirement often hampers the process.
(Read also: Financial authority foresees 21 IPOs this year)
Nurhaida expressed the hope that the relaxation would encourage more local companies to carry out IPOs.
The IDX has pledged to cooperate by opening more going-public information centers, aiming to have a center in all provinces nationwide, up from only five currently so that firms' representatives do not need to fly to Jakarta to seek IPO-related information.
"Proposed listed firms' [representatives] usually can't get into the bourse building because the [security] is just like that in the Pentagon," IDX president director Tito Sulistio said, describing the difficulties faced by the firms.
The bourse has recorded a decline in IPOs in recent years. Sixteen new IPOs were recorded last year and only 15 in 2015. The number of companies going public stood at 30 and 20 in 2013 and 2014, respectively. It expects to see 35 IPOs this year while the OJK expects only 21. (bbn)
