TEMPO.CO, Jakarta - The Financial Services Authority (OJK) is encouraging small and medium enterprises (SMEs) to take part in the financial market. OJK board of commissioners' member Nurhaida this is the regulator's way of boosting the domestic economy amid a sluggish global market.
With the inclusion of SMEs in the bourse, Nurhaida said, capital markets will have more varieties in financing options.
Nevertheless, developing SMEs into public companies requires its own rules. SMEs' presence on the trading floor will result in a third board made specifically to list SMEs, as they are a business unit a limited partnership (CV) with lower funds and assets compared to a limited liability company (PT). Therefore, it is not possible for SMEs to join the regular market.
"The demand [for stocks] would be small and there would need to be a market maker," said Nurhaida.
In addition to SMEs, the OJK wants to encourage more state-owned enterprises into releasing public shares. Right now there are 20 SOEs that have gone public.
Encouraging SOEs and SMEs to foray into the Indonesia Stock Exchange (IDX) are two of OJK's 15 capital market policies aimed at stimulating economic growth. In total, the OJK has issued 35 policies aimed at stimulating the domestic economy to prevent substantial damage from the weakening global economy.