After having encouraged capital inflows into Indonesia through the tax amnesty program, Indonesian President Joko Widodo now also urges those multinational companies that operate in Indonesia but are listed abroad to go-public on the Indonesia Stock Exchange. He particularly targets those companies that generate more than 50 percent of their revenue from Indonesia, or, have more than 50 percent of their total assets in Indonesia.
To authorities it does not feel right when companies have production centers in Indonesia, sometimes even big plantations, but are listed abroad (primarily in Singapore, Malaysia, China and Australia). However, Widodo, who is often called Jokowi, emphasizes he does not want to force these companies to list in Indonesia, but only intends to invite them politely.
Tito Sulistio, General Director of the Indonesia Stock Exchange, said there are 52 companies that are on the radar of authorities. All these companies have market capitalization that exceeds IDR 400 trillion (approx. USD $30 billion). It mainly involves companies engaged in mining, property and plantations. These companies will be invited by the Indonesia Stock Exchange for a meeting. However, Sulistio declined to share any names. It is assumed these companies prefer to list abroad as the Indonesian market is less liquid and less active.
The Indonesia Stock Exchange is also eager to harmonize regulations with its foreign counterparts (for example the Bursa Malaysia Berhad) in order to make it easier for companies to list on two stock exchanges and not having to deal with different sets of regulations on each exchange. Also Indonesia's Financial Services Authority (OJK) said it wants to simplify the initial public offering (IPO) process for these multinationals in order to make it more attractive to go public in Indonesia.
Besides multinationals, Jokowi also urges those local companies that have taken up more than IDR 1 trillion in bank loans as well as subsidiaries of the nation's state-owned enterprises to go public in Indonesia. The IPO of these state-owned companies would bring in more funds for the development of infrastructure projects across the nation (as it is not possible to rely on bank loans only).
Examples of Companies Listed Abroad with Large Assets in Indonesia:
|Singapore Stock Exchange
||Australian Stock Exchange
||New York Stock Exchange
||London Stock Exchange
|Golden Energy & Resources||Cokal limited||Freeport-McMoran Copper & Gold||Churchill Mining|
|Geo Energy Resources||Sumatera Copper & Gold||MP Evans Group|
|BlackGold Natural Resources||Sihayo Gold Limited||Salamander Energy|
|First Resources||Panax Geothermal||Asia Resource Minerals|
|Bumitama Agri||Indo Mines|
|Golden Agri Resources|
In terms of number of initial public offerings (IPOs) on the local stock exchange, Indonesia is leading the race in the Southeast Asian region so far in 2017. A total of 19 companies have conducted their IPO on the Indonesia Stock Exchange up to 5 July 2017. On second place comes Thailand with 11 IPOs in the January-June 2017 period, followed by Singapore and Malaysia (8), and the Philippines (4). But despite having seen most IPOs, the combined value of these IPOs is relatively small in Indonesia compared to its foreign counterparts.
Last Update: 29 Mar 2021
IPOs on the Indonesia Stock Exchange up to 5 July 2017
|Company||P: 29 Mar 2021||P: 28 Mar 2021||Gain/Loss||P/E ttm||Yield %||Gain/Loss YTD|
|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%|
|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%|
|First Indo American Leasing Tbk.FINN||50||50||0.00%||N/A||0.00%||0.00%|
|Alfa Energi Investama Tbk.FIRE||590||605||-2.48%||N/A||0.00%||-48.47%|
|Totalindo Eka Persada Tbk.TOPS||50||50||0.00%||N/A||0.00%||0.00%|
|Kirana Megatara Tbk.KMTR||416||414||0.48%||N/A||0.00%||20.93%|
|Hartadinata Abadi Tbk.HRTA||206||208||-0.96%||N/A||0.00%||-11.21%|
|MAP Boga AdiperkasaMAPB||1,330||1,330||0.00%||N/A||0.00%||3.10%|
|Armidian Karyatama Tbk.ARMY||50||50||0.00%||N/A||0.00%||0.00%|
|Buyung Poetra Sembada Tbk.HOKI||252||254||-0.79%||N/A||0.00%||-76.34%|
|Marga Abhinaya Abadi Tbk.MABA||50||50||0.00%||N/A||0.00%||0.00%|
|Megapower Makmur Tbk.MPOW||82||80||2.50%||N/A||0.00%||22.39%|
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