IDX Commissioner Estimates Unicorn Startups will Floor on the Stock

Commissioner of the Indonesia Stock Exchange (IDX) Pandu Patria Sjahrir assessed that the startup unicorn in the technology sector will soon enliven the Indonesian capital market. The ongoing rapid growth, according to Pandu, will accelerate the startup unicorn to immediately conduct an initial public offering (IPO) on the IDX.

“In my opinion, it is faster than we expected, because these companies have really good growth,” said Pandu during a session at the event entitled “Ask the Exchange with Investabook” Tuesday (3/11/2020).

Pandu said that the entry of a startup unicorn to the stock market will have a positive impact on the development of the Indonesian capital market. These startups, he said, have now become part of Indonesian society in various aspects of life such as ordering food, shopping, all of which are done online.

“And it is also proven that there is performance too because we have become a public company (SEA Group on the NYSE, ed.) It has been three years where indeed market capital can be more efficient for fundraising and is also better known to stakeholders. I think it’s good,” explained Pandu.

Pandu, who is also a Commissioner at SEA Group Indonesia, said that now is the right moment for startups to list on the stock exchange. One reason is that the rapid development of technology during the Covid-19 pandemic has changed people’s lifestyles.

“Like it or not, it can be said that because of Covid, many eCommerce companies, eCommerce logistics, fintech, have experienced rapid growth because people’s lives have changed,” said Pandu.

High Demand in the Market

In addition, according to him, technology is an asset class most sought after by both retail and institutional investors. This is a golden opportunity because the technology startup is in high demand in the market.

“It’s actually positive because with all of this, you as a company will be stronger and for the processing of funds you can also have a wide variety of things,” said Pandu.

As is known, the IDX has determined that it will start launching an electronic initial public offering (e-IPO) system starting in January 2021. IDX Director of Information Technology and Risk Management Fithri Hadi said, apart from providing convenience to prospective stock exchange issuers, the e-IPO system also makes it easy for retail investors who want to invest in the primary market.

“The e-IPO system allows retail investors to buy in the primary market. Retail investors can buy 15 percent in the primary market, so that retail participation is more accommodated. You can buy directly at a broker or to a site provided directly by the stock exchange,” said Fithri.

Good Exchange, Unicorn Congregation Finalizes IPO Plans

The growth of startup companies in the country has only sprouted in the last seven years. Even though it is a bit late compared to countries like the United States and China, Indonesia now should be proud because it already has five startups with unicorn titles.

In fact, some of them have expanded overseas. Reportedly, the five startups with a valuation of more than US$ 1 billion or equivalent to IDR 14.9 trillion will raise additional capital from the stock market.

Considering the market conditions and the economic crisis caused by the current Covid-19 outbreak, the unicorns in the congregation prefer to prepare an initial public offering (IPO) plan carefully before actually taking the floor on the stock exchange.

Tokopedia’s VP of Corporate Communications, Nuraini Razak, ensures that the company will definitely carry out an IPO or initial public offering. “The hope is that every Indonesian, including Tokopedia users, sellers, and partners, will have the opportunity to have Tokopedia,” said Nuraini, some time ago.