MSME Minister Maman Abdurrahman Launches 'Rise To IPO', Middle Business Financing Solution

Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman. (Photo: Special)

JAKARTA - Minister of Micro, Small and Medium Enterprises (MSMEs) Maman Abdurrahman launched the Rise To IPO Program as an alternative financing solution for medium enterprises.

Maman said, one of the biggest challenges faced by middle entrepreneurs in Indonesia today is not only about capital, but also access to long-term funding schemes that meet needs and are sustainable.

"Meanwhile, on the other hand, the Indonesian capital market continues to grow as a potential alternative source of funding," said Minister Maman when giving a speech at the launch of the Rise To IPO program: Empowering Medium EnterPRises to IPO in Jakarta, Wednesday 9 July.

For this reason, Maman continued, the Rise To IPO Program was present as a concrete answer to the need for alternative financing.

"This program is a transformation bridge that encourages middle entrepreneurs to advance to class, from a closed company to an open company, which is more organized, transparent, and competitive," he said.

Maman said, based on data from the Indonesia Stock Exchange until 2024, there were already 42 medium-scale companies listed on the acceleration board, with the majority coming from the consumer goods, technology, and property sectors.

"We hope that this medium-sized business can be an anchor for millions of micro and small businesses throughout Indonesia. Because every medium-sized, medium-powered effort can become an off taker as well as an aggregator for micro and small businesses in supply chain partnership schemes, so as to create a multiplier effect for the Indonesian economy," he said.

This, said Maman, is in line with Asta Cita Presiden Prabowo Subianto, which emphasizes the importance of downstreaming and strengthening the productive sector.

So by becoming a public company, it will not only strengthen the medium business, but also provide opportunities for micro and small businesses to develop and increase their business capacity.

"This is the essence of the people's economy which is the main pillar of Asta Cita Presiden Prabowo," he said.

Minister Maman also reminded the importance of curating and evaluating for medium entrepreneurs who are included in the Rise To IPO program.

According to him, this should not only be based on the aspect of the amount, but also on the aspect of qualification, quality, and fundamentals of the company.

"I advise that the number should not be a problem, the important thing is that its fundamentals are strong and can be used as champions to be encouraged as an example to the Indonesian public that small and medium enterprises can have the capacity to go public," he said.

Deputy for Medium Enterprises at the Ministry of MSMEs Bagus Rachman explained that there are three main objectives in the Rise To IPO: Empowering Medium EnterPRises to IPO' program, namely increasing awareness and literacy about the capital market, providing technical and concrete assistance strategies, and opening up opportunities for participants who pass the curation to take part in the IDX Incubator program.

"Providing this technical and concrete assistance strategy also includes legal, financial, and corporate governance aspects in the process of going public," he said.

Rise is an acronym for Reach or potential medium-sized venture, Inspire for them to dare to go public, Support in the process of business transformation, and Elevate to competitive open company levels.

The Rise To IPO program, said Bagus, was compiled with several stages comprehensively, which prioritize education, measurable selection, and practical and implementative assistance.

"Today, the participants of the Rise To IPO program will take part in a go public seminar that is packaged in the form of an educational talk show with the Indonesia Stock Exchange, BNI Sekuritas, and PT Data Sinergitama Jaya Tbk, as a company that has managed to list its shares on the stock exchange as a source of learning," he said.

The next stage, said Bagus, the program participants will take part in the intensive coaching clinic in September 2025, namely in-depth assistance individually and in small groups, discussing legal, financial, and strategy aspects for the IPO.

"After passing through this stage, the selected participants will be offered to enter the IDX Incubator 2026 program, as a further development phase towards the real IPO," he said.