The Jakarta Post
The Indonesia Stock Exchange (IDX) is preparing a 50 percent discount on initial listing fees for companies wishing to go public to encourage more firms to seek funding through the stock market.
IDX assessment director I Gede Nyoman Yetna told the press on Tuesday that newly listed companies would only have to pay around Rp 12.5 million (US$867) to Rp 125 million for an initial listing fee. The fees would depend on which board the companies were listed on, he added.
“This applies to companies that want to list their shares on the bourse [through initial public offering (IPO)], as well as to listed companies that want to issue additional new shares,” he said during a virtual press briefing.
For a new share listing, either a rights issue or private placement, companies would only have to pay around Rp 5 million to Rp 75 million. The new fees are effective from Jun. 18 to Dec. 17.
IDX president director Inarno Djajadi said last Friday that the incentive was meant as a stimulus for companies that wanted to list their shares on the stock market.
“This is also in line with Pak Wimboh’s instruction that self-regulatory organizations should also share the pain with others during this pandemic,” he said, referring to the Financial Services Authority (OJK) chairman.
Publicly Listed Companies Association (AEI) executive director Samsul Hidayat lauded the IDX’s move, saying that the incentive would reduce companies’ expenses in listing their shares on the bourse.
“This initiative could also entice more companies to go public or seek more funding through the stock market,” he told The Jakarta Post on Wednesday.
Although many investors are still in wait-and-see mode as the coronavirus continues to spread across the globe, Samsul suggested that companies that were seeking funding in the stock market should maintain intensive communication with investors so as to encourage investment.
Despite the pandemic, 29 companies had listed their shares in the bourse thus far this year, the most recent one being packaging manufacturer PT Megalestari Epack Sentosaraya, which was listed on Thursday.
In the meantime, the bourse is also considering whether to relax some of the trading regulations that have been issued to minimize pressure on the Indonesian stock market.
The pandemic has caused a global stock market rout and caused the Jakarta Composite Index (JCI), the IDX’s main gauge, to lose more than 37 percent of its value as it touched its lowest level of 3,937 on March 27.
“As we’ve started to see less volatility in the market compared with three months ago, we might discuss [the relaxation] with the OJK,” IDX trading director Laksono Widodo said.
The regulations include the ban on pre-opening trading that takes place before the market opens at 9 a.m. and a halt in trading of stocks that have fallen by 7 percent.
Laksono, however, could not predict when those regulations would be relaxed as he expected the bourse and the OJK would need time to discuss the matter.
“Once we receive approval from the OJK, the change could be applied in a matter of days,” he added.
Meanwhile, the IDX on Tuesday also appointed publicly listed coal miner PT Toba Bara Sejahtera director Pandu Patria Sjahrir as its new commissioner representing listed companies.
Pandu, who is also the nephew of Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, replaces publicly listed coal miner PT Adaro Energy president director Garibaldi “Boy” Thohir and will serve for the 2020-2023 period.
The IDX also appointed two other commissioners, Heru Handayanto and Karman Pamurahardjo, to represent brokerage firms.