IDX and Kadin to Build Incubator to Prepare Startup IPO

The rise of the creative digital industry in Indonesia has succeeded in attracting attention Indonesia Stock Exchange (IDX) and the Indonesian Chamber of Commerce and Industry (Kadin) for push the perpetrators immediately entered the capital market. This was followed up through the collaboration between IDX and Kadin to establish incubators in Jakarta and Bali. The goal is to prepare startup actors to do Initial Public Offering (IPO) on the stock exchange.

Quoted from Dealstreetasia, IDX Director Tito Sulistio said:

“We together with Kadin will prepare an incubator to maintain startups. We will facilitate them to get support from lawyers, accountants, venture capital funds and consultants to help them raise funds through IPOs, banks or venture capital.”

Tito revealed that the two parties have also reached an agreement to build incubators in the cities of Jakarta and Bali in July.

This step was taken against the background of regulations being prepared by the Financial Services Authority (OJK) regarding IPOs for SMEs and startups. In the regulation, which can be the legal basis for SMEs and startups, it is stated that they can generate funds of up to IDR 1 trillion from an IPO. But the regulator is also still evaluating the IPO norms for startups which are expected to be implemented by the end of this year.

In addition to the incubator development plan, IDX and Kadin are also currently in talks to establish an incubator board especially for SMEs and startups. The idea is still related to the current regulation, which is that only SMEs with a minimum net asset of IDR 5 billion are eligible to trade shares on the IDX.

Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for MSMEs, Cooperatives and Creative Industries Sandiaga Uno also hopes that 10 of the 50 identified SMEs will be able to enter the capital market within the next one to two years. The names of e-commerce players such as Bhineka, Traveloka, Tokopedia, and Bukalapak are e-commerce players called Sandiaga who are ready for an IPO.

“We will benefit if 5-10 SMEs in the technology and e-commerce sectors will go for an IPO. Companies such as Bukalapak, Tokopedia, Traveloka, and Bhineka should be ready for an IPO," said Sandiaga.