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Bourse opens securities crowdfunding for small firms
The securities crowdfunding will allow SMEs to offer to investors equity, debt papers or sukuk for sharia-based funding worth up to Rp 10 billion (US$712,918).
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A man works on a guitar at the Arya Guitar Custom workshop in Klapanunggal, Bogor, West Java, on March 28, 2020. (Antara/Yulius Satria Wijaya)
T
he Indonesia Stock Exchange (IDX) launched on Monday a securities crowdfunding (SCF) scheme aiming to open access for small and medium enterprises (SMEs) to raise funding from the capital market while at the same time attracting more millennial investors into the market.
The SCF can be an alternative source of funding for all types of small businesses, especially those that are still unbankable and partnering with the government in certain projects, Financial Services Authority (OJK) chairman Wimboh Santoso said.
“The SCF provides a fast, easy and inexpensive alternative source of funding. Young investors can also use this as an alternative portfolio,” he said during the opening of stock market trading in 2021 livestreamed from the IDX building in Jakarta on Monday.
Coordinating Economic Affairs Minister Airlangga Hartarto also attended the event and pressed the bell to officially start this year’s first trading day.
Small businesses in Indonesia account for more than 60 percent of gross domestic product (GDP) and employ a majority of the labor force. However, they have been hit hard by the COVID-19 pandemic as the economy fell into recession and discretionary spending dried up.
At the same time, there are still 23 million small business owners in the country that have no access to financing from the banking sector, Cooperatives and SMEs Minister Teten Masduki said in December, further worsening the situation.
The recently launched securities crowdfunding will allow SMEs to offer investors equity, debt papers or sukuk for funding worth up to Rp 10 billion (US$712,918) for a period of 45 days through crowdfunding agencies.
