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View all search resultsOJK slashes 2020 equity fundraising target by 47 percent
Despite revising down its estimate, the OJK remains optimistic that capital market fundraising will rebound along with the economy next year.
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ndonesia’s Financial Services Authority (OJK) has lowered its capital market fundraising estimate for this year to Rp 100 trillion (US$6.84 billion), as some issuers are delaying their fundraising plans amid the global rout triggered by the COVID-19 pandemic.
The revised figure is 47 percent lower than the authority’s initial estimate of Rp 190 trillion and almost 40 percent lower than the Rp 166 trillion realized in 2019.
“Like it or not, we have to adjust the target during this pandemic,” Hoesen, the OJK’s chief executive of capital market supervision, said during a virtual press briefing on Monday.
The Jakarta Composite Index (JCI), the main gauge of the Indonesia Stock Exchange (IDX), has shed more than 18 percent of its value this year to date, with a heavy loss in March when the index crashed to 3,937, its lowest level in more than five years.
The local bourse recorded a foreign net sell of Rp 48.07 trillion on Tuesday as foreign investors dumped risky assets due to pandemic fears, while the JCI recouped 0.87 percent on Tuesday to end the day’s trading session at 5,159.45.
Although the OJK has recorded a total of Rp 93.39 trillion in funds raised from 141 initial public offerings (IPOs) and debt paper issuances as of Oct. 26, several companies have decided to postpone their fundraising plans.
The Indonesia Securities Pricing Corporation (PHEI) said in May that the company had revised down its issuance forecast for this year from an initial Rp 170 trillion to between Rp 100 trillion and Rp 110 trillion, citing growing uncertainties as a result of the pandemic.
