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IDX wants more technology startups to go public
The Indonesia Stock Exchange (IDX) is pushing technology startups to go public by loosening requirements for those seeking to carry out an initial public offering (IPO) and strengthening collaboration with other related parties
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he Indonesia Stock Exchange (IDX) is pushing technology startups to go public by loosening requirements for those seeking to carry out an initial public offering (IPO) and strengthening collaboration with other related parties.
The IDX said it was in the process of revising several requirements through its “acceleration board” — a board that was specially established to accommodate small and medium enterprises (SMEs) — in order to make sure startup companies are able to raise funds in the bourse.
“In an effort to support startups in going public, the IDX is trying to provide more lenient rules, so they have equal opportunities with well-established companies when it comes to raising funds,” IDX corporate valuation director I Gede Nyoman Yetna told reporters recently.
The new rules were in the form of drafts, as the IDX was still in the process of making changes based on input from the Financial Services Authority (OJK) and other stakeholders, he said.
To help startups, the IDX would allow those recording losses to go public, so long as they are profitable within at least six years after the IPO.
Moreover, the bourse would also simplify the accounting process for startups, Nyoman said.
The IDX mentioned that one company under its incubator program — PT Yelooo Integra Datanet (Passpod) — would launch an IPO in the fourth quarter of this year.
Passpod is a startup company engaged in tourist services. It provides modem rentals for tourists who are traveling abroad. The company previously said it aimed to offer 34 percent of its shares to the public, with the hope of raising Rp 40 billion (US$2.6 million) in fresh funds to accelerate the business expansion.
The bourse has been making many efforts to encourage technology companies to go public. The goal is for big players such as ride-hailing firm Go-Jek and other “unicorns” — startup companies valued at over $1 billion — to obtain fresh funds from the bourse and expand their businesses.
Indonesia has seen the digital economy grow rapidly, with many e-commerce players, financial technology companies and other startups coming out of the tech industry.
Today, the country is home to four unicorns: Go-Jek, online travel and hotel booking platform Traveloka and e-commerce platforms Tokopedia and Bukalapak.
The IDX alone cannot encourage these types of companies to go public, so it has collaborated with the Creative Economy Agency (Bekraf).
Together, Bekraf and the IDX launched the GoStartupIndonesia (GSI) platform on Thursday in an effort to accelerate growth of the startup ecosystem.
The establishment of GSI is hoped to become a solution to help startups overcome the challenges they face when scaling up. With a program called CreaX (Creative Exchange for Startups), Bekraf will try to provide solutions in the form of access to capital through IPOs.
In order to search for new talents in the industry, Bekraf will also hold roadshows in big cities such as Medan in North Sumatra, Surabaya in East Java, Denpasar in Bali, and Jakarta. Competitions will be held at the roadshows and startups will be provided with mentoring.
“With these competitions, we will be able to identify the startups that have strong potential,” Bekraf head Triawan Munaf said.
In addition, GSI will also develop a website that is intended to become a “one-stop service for startups”.
On the website, startups have the chance to be connected to the overall startup ecosystem in Indonesia and have access to news updates, training and discussion forums.
