IDX Explores Regulations to Support Startups on Stock Exchange

The Indonesia Stock Exchange (IDX) continues to encourage local startups to conduct an initial public offering (IPO) on the stock exchange. Moreover, recently startups engaged in eCommerce with high valuations have given signals that they will soon take the floor on the market.

The Exchange Company Assessment Director, I Gede Nyoman Yetna, said the IDX is currently conducting an assessment to prepare appropriate regulations and make it easier for startups intending to conduct an IPO, including potential investors.

“We are currently exploring how we [IDX] prepare regulations that can first make it easier for eCommerce [for an IPO] and second is how to protect the interests of investors,” said Nyoman in the #TanyaIDX video in Jakarta, Tuesday (5/1 / 2021). Nyoman said, this step also includes disclosure, so that investors who will participate already know the risks and characteristics of the startup concerned.

“For example, as in conventional companies, investors will generally see the bottom line, see profits. The characteristics of eCommerce companies and the others are different, by looking at how the growth opportunities are, it will be shown,” said Nyoman. Because of these reasons, all parties must know how to see the company’s performance, according to Nyoman.

“For companies with special characteristics, we must learn again to see a performance not only from the bottom line, but growth opportunity. It could be, in a certain time period of 5-7 years, the bottom line is still not green, but the growth opportunity will be. shown by the company will be more promising,” said Nyoman.

Two Startup Companies are in the Book Building Stage, Ready to Floor Soon

The stock market will be more vibrant. This is because MDI Ventures is preparing an initial public offering (IPO) for startups that are in its investment portfolio. MDI Ventures Vice President Investment, Aldi Adrian Hartanto, said that currently two of the four startup companies have completed audits and financial report preparation.

“It is currently in the book building stage and ready to take the floor immediately,” said Aldi, Thursday (7/1). Currently, MDI Ventures cannot confirm how many startups will take the floor in 2021.

This is because they are also considering market timing, considering that 2021 is a quite crucial year with the distribution of the Covid-19 vaccine starting. Even so with the funds collected (emissions) from this startup IPO.

However, Aldi did not hesitate to provide a grid. For the sector, all of these start-up companies are engaged in technology-related fields or the enablers of the technology platform. In addition, of the two companies that will release their shares, one company will list on the domestic stock exchange, while the other company will list on the foreign exchange.

Exploration to Facilitate Startups to Floor in 2021

Previously, the Director of Company Appraisal for the Indonesia Stock Exchange (IDX), I Gede Nyoman Yetna Setia, revealed that his party is currently conducting an assessment to prepare appropriate regulations and make it easier for startups that will IPO and potential investors.

He said, with different characteristics between conventional companies and e-commerce, all parties must study again in seeing the company’s performance.

“It could, say, in a certain time period of five to seven years, the bottom line is still not green. However, the growth opportunity that the company will show will be more promising,” said Nyoman at the #TanyaIDX event, Wednesday (6/1).

Regarding regulations, Aldi really appreciates the rules that have been carried out by the IDX by providing an acceleration board. This allows companies that need additional funds to enter the mainboard, namely by conducting an IPO first through the acceleration board as capital to be able to “upgrade”.