IDX Acceleration Board for Startups and SMEs Published December 2018

One of the options so that more startups and SMEs can take the floor in stock Exchange is to publish acceleration board rules. The Indonesia Stock Exchange (IDX), or the Indonesia Stock Exchange (IDX), is currently formulating a new rule for startups and SMEs in Indonesia, namely the acceleration board. The ultimate goal is for more fundraising to be utilized through the capital market.

Currently, IDX has entered the final stage and will have final discussions with OJK as the regulator. The goal is that when everything is done, acceleration board rules will be released at the end of 2018.

"After we make a draft and submit it to related parties, the next process is further discussions with OJK, before we issue the rules," said Senior Manager State Owned & Regional-Owned Enterprise Privatization, Startup, SME & Foreign Listing IDX Listyorini Dian Pratiwi to DailySocial .

Currently, there are only three startups, which are dominated by fintech, that have made an Initial Public Offering (IPO) on the Indonesia Stock Exchange. They are kiosk, MCash and NFC Indonesia. Although there are many startups in Indonesia that have the potential to conduct IPOs, the still strict regulations from the IDX and OJK, make it difficult for them to conduct IPOs on the stock exchange.

"By conducting an IPO, all Indonesian people can participate in providing capital to Indonesian startups and SMEs, in the end it is not only fintech services that carry out IPOs, but other categories of startups."

Increasing local investors

Fundraising activities, which are still mostly carried out by startups, have attracted the attention of foreign investors. Asked whether in the future foreign investors will dominate capital for startups in Indonesia, Listyorini emphasized that currently the IDX noted that there were more local investors than foreign investors.

"We noted that nearly 60% of the investment came from local investors. The news that there are more foreign investors than local investors is not true," said Listyorini.

Listyorini continued, through the acceleration board, it is hoped that it can encourage more startups and SMEs to take the floor on the stock exchange. Not only digital-based companies, but also conventional SMEs can also join the capital market.