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Yearender: Tech industry buoys IDX in 2021
The IDXTECHNO subindex of technology companies saw the strongest gains, and a tech company delivered the biggest IPO ever on Indonesia’s bourse.
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A screen shows the IDX Composite index value during the opening of the bourse in Jakarta on May 26, 2020. (Antara/M Risyal Hidayat)
T
he technology industry emerged as the key driving force for the Indonesian stock exchange this year, fueled by a digital economy euphoria in the course of the COVID-19 pandemic.
Indonesia Stock Exchange (IDX) data show that tech stocks were among the biggest gainers, that the technology subindex IDXTECHNO saw the strongest rally and that a tech company conducted the biggest initial public offering (IPO) this year – and in IDX history.
“There is a trend abroad, in the United States and in Europe, where technology stocks are blooming, and [Indonesia] has begun to see that too in 2021,” IDX president director Inarno Djajadi said on Dec. 9.
The IDXTECHNO rose 696.59 percent year-to-date (ytd) to 7,758 points as of Nov. 30, dwarfing the second-biggest gainer on the local bourse, the transportation subindex IDXTRANS, which rose 56.56 percent ytd over the same period.
Indonesia’s tech stock euphoria was driven by a combination of expected strong digital economy growth, a shift in consumption toward online platforms and unicorn listings announced over the course of the pandemic.
The IDXTECHNO began to spike in June after media reported that PT Bukalapak.com (BUKA) – one of the country’s fastest-growing e-commerce platforms – filed for its IDX listing, but the subindex has shed a chunk of its value since peaking at 11,997 points on Aug. 6.
Analysts had warned that companies would see their valuations tumble if they failed to deliver the sizable profits investors expected.
