Lack of Interest for IPOs on Indonesia Stock Exchange
There is still few enthusiasm of companies to conduct an initial public offering (IPO) on the Indonesia Stock Exchange. So far in 2017 only eight companies went public (while there were two companies - Ciputra Surya and Ciputra Property - that delisted from the exchange this year). However, considering Indonesia's economic growth is accelerating, while Standard & Poor's upgraded Indonesia to investment grade status (which unlocks funds from conservative institutional investors) there should emerge some more enthusiasm.
Still, the global picture remains filled with uncertainty amid geopolitical turmoil, US President Donald Trump's controversial policies and behavior, the looming Fed Funds Rate hikes, while China's economy may not be as stable as it looks. Most investors would therefore prefer to wait and see first before taking any big corporate moves. Moreover, the domestic political situation in Indonesia is also still plagued by tensions (although these have reduced) after the 2017 Jakarta gubernatorial election and former Jakarta governor Ahok's blasphemy trial.
Unsurprisingly, the value of IPOs is bleak as well so far this year in Indonesia. The biggest IPO so far in 2017 was that of Nusantara Pelabuhan Handal, collecting IDR 308.6 billion (approx. USD $23.2 million). Compared to preceding years (see table below) this forms a small IPO. Therefore, the new public companies have not contributed too much to the performance of the benchmark Jakarta Composite Index so far this year.
IPO Data Indonesia 2012-2017:
| 2012 |
2013 | 2014 | 2015 | 2016 | 2017¹ | |
| Number of IPOs | 24 | 30 | 19 | 15 | 14 | 8 |
| Total Value (in IDR trillion) |
10.4 | 16.7 | 8.3 | 11.3 | 12.1 | 0.97 |
| Biggest IPO (in IDR trillion) |
2.2 | 1.5 | 2.5 | 1.0 | 5.2 | 0.3 |
¹ Per 6 June 2017
Source: Kontan
Compared to its regional peers, Indonesia has few listed companies. Wilson Sofan, Head of Research at Erdhika Elit Sekuritas, says this can be attributed to the mindset of Indonesia's rich (business) families. They are less interested in using the stock market as source of funds because they will need to share profit with other shareholders. If they have a profitable business, then they prefer to keep it for themselves and use a bank loan or sell bonds in order to obtain additional funds for business expansion (if this cannot be financed through internal cash reserves).
Last Update: 29 Mar 2021
IPOs on the Indonesia Stock Exchange up to 7 June 2017
| Company | P: 29 Mar 2021 | P: 28 Mar 2021 | Gain/Loss | P/E ttm | Yield % | Gain/Loss YTD |
| Sanurhasta MitraMINA | 79 | 64 | 23.44% | N/A | 0.00% | 58.00% |
| Forza Land IndonesiaFORZ | 50 | 50 | 0.00% | N/A | 0.00% | 0.00% |
| Industri dan Perdagangan Bintraco DharmaCARS | 50 | 50 | 0.00% | N/A | 0.00% | 0.00% |
| Nusantara Pelabuhan HandalPORT | 490 | 498 | -1.61% | N/A | 0.00% | 16.11% |
| Sariguna PrimatirtaCLEO | 468 | 466 | 0.43% | N/A | 0.00% | -9.13% |
| Pelayaran Tamarin SamudraTAMU | 50 | 50 | 0.00% | N/A | 0.00% | 0.00% |
| Cahayasakti Investindo SuksesCSIS | 80 | 76 | 5.26% | N/A | 0.00% | 25.00% |
| Terregra Asia EnergyTGRA | 140 | 142 | -1.41% | N/A | 0.00% | -49.28% |
| Combined Total | 1,407 | 1,396 | 0.79% | -4.74% |
Green colour indicates upward movement
Red colour indicates downward movement
P = price; E = earnings; D = dividend; Yield = D/P
"N/A" indicates P/E < 0 (negative earnings)
"-" indicates E,D,P or YTD is not available
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