So far in 2017, a total of 26 companies were added to the Indonesia Stock Exchange, a sharp rebound from 18 and 16 IPOs in 2015 and 2016, respectively. Although the global and domestic economic environments have improved in 2017, there remain lingering domestic and external concerns (for example the impact of looming monetary tightening in the USA, US President Donald Trump's controversial policies, as well as Indonesia's bleak economic growth and household consumption).

Besides the modestly improving economy, the rebound in the number of Indonesian IPOs could also (partly) be explained by local companies having gotten used to these lingering uncertainties.

However, the 26 companies that have completed their IPOs in Indonesia so far this year only collected a combined IDR 5.54 trillion (approx. USD $410 million), far below last year's result of IDR 12.11 trillion (originating from only 16 IPOs).

Samsul Hidayat, Director of Corporate Listing at the Indonesia Stock Exchange (IDX), said there are still ten more IPOs in the pipeline in Indonesia and therefore the IDX' IPO target of 35 listings in 2017 can be achieved. However, those IPOs that are in the pipeline are also small.

Edwin Sebayang, Head of Research at MNC Sekuritas, said the small sizes of Indonesian IPOs this year are also the consequence of the lower interest rate environment in Indonesia (Bank Indonesia having cut its key rate significantly in recent years). This makes it attractive for companies to sell bonds in order to seek funds for business expansion.

Initial Public Offerings (IPO) in Indonesia:

2012 2013 2014 2015 2016 2017
Number of IPOs   23   31   24   18   16   26¹
Value of IPOs
(in IDR trillion)
10.14 16.75  9.12 11.31 12.11  5.54¹

¹ up to 13 October 2017
Source: IDX

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