The Latest Regulation Allows Startup and SMEs to Merely Enter the Stock Exhange

The Latest Regulation Allows Startup and SMEs to Merely Enter the Stock Exhange

Only the Rp50 to Rp250 billion companies are allowed to submit to the Indonesian Stock Exchange Acceleration Board
Only the Rp50 to Rp250 billion companies are allowed to submit to the Indonesian Stock Exchange Acceleration Board
Only the Rp50 to Rp250 billion companies are allowed to submit to the Indonesian Stock Exchange Acceleration Board

The new record for small-medium asset companies on the Acceleration board officially issued on July 22nd, 2019. Using the new board, startup and SMEs are now having access to funding through the stock exchange.

The Acceleration board officially run as the issuance of Financial Service Authority Regulation (POJK) Number 53/POJK.04/2017 on Registration Statement in terms of General Offering and Capital Investment using Pre-Emptive Rights from Small-Medium Asset Emittances.

On the issuance of POJK 53, Shanghai Stock Exchange also create STAR Market for China’s tech companies. It’s a challenge to Nasdaq, where the US’ giant tech was born.

The STAR Market has given positive results. Seen from the first exchange that reaches profit on average from 84% to 400%.

Loss happens, yet income is more important

The new regulation allows companies with Rp50 to Rp250 billion asset, which usually startups or SMEs to submit to the Indonesian Stock Exchange. Indonesian Stock Exchange’s Head of Registered Company Developer Division, Saptono Adi Junarso also said, the company in loss can still submit for the Acceleration board.

“Loss can happen, the more important is to gain income. There’s no room for empty pocket,” he said at the Accelerator board socialization in IDX.

Although, IDX still preparing for the exchange regulation in this board. For the interested partners, they can only register and wait for the regulation to be issued for stock exchange.

“The exchange regulation is to be issued by late September or early October, the can make it to IPO by October 2019,” Junarso said.

The tight regulation of FSA and IDX has become the reason behind SMEs and startups difficulty in fundraising at the stock exchange. The acceleration board which should have been issued by this year is their answer to accommodate funds for startups and SMEs.

There are only four startups registered before the Accelerator board issued. Those are Kioson, MCash, NFC, and Passpod.

He also mentioned that emittance could possibly be promoted to the Main or Development Board as long as they keep up the good work. Although, the IDX team never set a target on this Acceleration board.

“Our management has considered that liquidity is not the highest priority. This is merely about providing funding access for companies,” he said.


Original article is in Indonesian, translated by Kristin Siagian

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