Strengthening The Capital Market Ecosystem, IDX Encourages IPO Readiness Through Strategic Assistance And Study

Indonesian stock exchange (photo: dock. Antara)

JAKARTA - Director of Corporate Assessment of the Indonesia Stock Exchange (IDX) I Gede Nyoman Yetna said that being an open and listed company on the Exchange is a strategic decision and an important corporate action that is generally only done once throughout the age of a company.

"So the IDX really appreciates companies that prepare as well and optimally as possible to become open companies," he said in his statement, Wednesday, July 2.

According to him, the success of the initial public offering (IPO) is not only determined by the IPO structure and market momentum, but also depends heavily on the company's internal readiness.

He added that this readiness includes financial performance, corporate governance, management quality, and the ability to convey a strong equity story.

"We encourage companies to have good IPO readiness for success both at the time of the IPO and also after the IPO, although this preparation takes a little longer," he explained.

Nyoman conveyed that the process of evaluating the registration document for recording securities on the IDX was carried out consistently and referred to applicable evaluation standards and regulations.

According to him, this evaluation emphasizes the fulfillment of formal and non-formal requirements, such as business continuity (going concern), quality management, and other aspects that are indicators of the company's feasibility to be listed on the Exchange.

He added that as part of a strategy to attract more companies that conduct IPOs, the IDX actively carries out educational and sustainable development activities to ensure all stakeholders understand the processes and readiness needed in the IPO.

Nyoman conveyed that through a special work unit, the IDX also provides assistance to companies, including those with large assets, both private, BUMN, and BUMD.

"Assistance is carried out through various initiatives such as going public workshops, coaching clinics, one-on-one meetings, and networking events that bring together business actors with capital market supporting professions," he said.

Nyoman hopes that this initiative can facilitate the company's access to the capital market ecosystem and accelerate the transformation process towards an open company.

Furthermore, he said that the IDX is currently preparing a strategic study related to the IPO which involves various stakeholders as resource persons and studies involving large business groups, potential IPO companies, institutional and retail investors, and government agencies.

"This study aims to understand the company's large-scale interest in the IPO, explore the challenges and expectations of business actors, and draw up recommendations regarding regulation improvements and strengthening market infrastructure," he concluded.