GoTo & Bukalapak Valuation Projection Reaches IDR 609 Trillion after IPO

The initial public offering (IPO) of unicorns such as GoTo and Bukalapak is expected to have a significant impact on the Indonesia Stock Exchange in terms of valuation.

Startups with a value of more than US$1 billion or unicorns, GoTo, and Bukalapak are rumored to be entering the Indonesia Stock Exchange through an IPO scheme. In fact, it is estimated that the corporate action can be realized this year.

Head of Research PT MNC Sekuritas Thendra Crisnanda said that the technology sector is currently booming due to the encouragement of 4 factors. First, the development of the digital economy is accelerating during the Covid-19 pandemic.

Second, the market’s bullish sentiment towards the technology sector. Third, the IPO plan for big unicorns in Southeast Asia, such as GoTo and Bukalapak. Fourth, the corporate action of acquiring technology companies by conglomerates in Indonesia.

This makes the technology sector stock index provide a return of 479.81 percent in the first semester of 2021, far above the transportation sector stock in second place which provides a return of 8.4 percent. Meanwhile, the JCI only rose 0.55 percent in the first half of 2021.

“So indeed the direction is to the new economy, to the technology sector, and that trend will continue, especially with the IPOs of GoTo and Bukalapak on the IDX,” he explained in the MNC Sekuritas webinar, Thursday (1/7/2021).

GoTo’s Market Capitalization Will Be the Second Largest on the IDX

Thendra conveyed that GoTo’s valuation assumption after the IPO was very large, ranging from US$35 billion-US$40 billion, or around IDR 420 trillion-IDR 560 trillion (assuming an exchange rate of IDR 14,000 per US dollar).

Therefore, GoTo’s market capitalization will later become the second largest on the IDX, behind PT Bank Central Asia BBCA worth IDR 742 trillion and overtaking PT Bank Rakyat Indonesia (Persero) Tbk. (BBRI) amounting to IDR 486 trillion.

Meanwhile, the assumption of Bukalapak’s valuation after the IPO is US$3.5 billion or around IDR 52.5 trillion. In total, GoTo and Bukalapak’s valuation after the IPO reached US$43.5 billion or around Rp609 trillion, about 12 percent of the current JCI market capitalization.

“So this unicorn IPO deserves attention and makes a big contribution to the Exchange,” he added. Meanwhile, in the same event, the Indonesia Stock Exchange (IDX) targets unicorn to start realizing an IPO in 2021 along with the completion of special regulations.

President Director of the Indonesia Stock Exchange (IDX), Inarno Djajadi said the Exchange together with the Financial Services Authority (OJK) held intense discussions to formulate regulations regarding startup initial public offerings (IPOs).

Meanwhile, as of semester I/2021, the IDX has 23 new listed companies. In the IPO pipeline, there are still 24 companies that will enter the Exchange. Inarno hopes that the 24 companies in the IPO pipeline can realize their corporate actions this year.

GoTo is Considered to Have Met the Data Security Requirements

The collaboration of the two most valuable technology companies in Indonesia, Gojek and Tokopedia, is still the concern of many parties.

The presence of the new collaboration entity, GoTo, is considered to be giving birth to many new challenges, one of which is related to data security risks. The issue of data security is the main focus of the Institute for Community Studies and Advocacy (Elsam).

This institution assesses that several factors can be used as benchmarks to assess the extent to which digital companies are committed to protecting users’ personal data.

These include resource allocation, risk assessment of data sharing, data subject rights, and infrastructure security.

Elsam researcher Lintang Setianti said that in the context of resource allocation, digital-based giant companies must implement the Data Protection Officer (DPO) function and have a Chief Information Security Officer (CISO).