IDX Raises Listing Target

TEMPO.CO, Jakarta – The Indonesia Stock Exchange (IDX) is set to encourage new listing on the stock exchange after this year's new IPO target was missed. IDX director Ito Warsito said the bourse's authority aims to list 35 new companies next year, higher than this year's unmet target 30 new issuers.

Ito said 60 listed companies are planning to hold additional listings (rights issues and bonus shares) next year. "Five more decided to postpone their IPO plans until next year," he said in Jakarta yesterday.

Hoesen, IDX director for corporate valuation, said this year's unmet listing target prompted the bourse's authority to raise next year's target. "A target revision is not unusual, because the authority sets high target," he said.

Ito said now that the domestic politics have begun to stabilize, next year's IPO target is achievable. This year, several companiest decided to delay their IPO plans because of political uncertainties. As of October 2014, 18 new issuers have listed their shares on the IDX. By year-end, it is expected that 25 more would go public.

Ito is confident that issuers' performances will improve with increasing economic growth and favorable politics. Next year's macro-economic assumption is expected to grow 5.4 to 5.7 percent, inflation is pegged at 5.5 percent, and the exchange rate is assumed at Rp12,000 per US dollar.

"With these assumptions, the IDX authority is targeting to book an average daily transaction of Rp7 trillion in 2015," he said.

AISHA SHAIDRA | FAIZ NASHRILLAH | DINI PRAMITA