Indonesia bourse, industry body to set up incubators to get startups IPO-ready

IDX President Director Tito Sulistio - Photo by Vincencia NLS

Indonesia is working towards getting its startups market-ready.

With an aim to take startups to tap the public markets, the Indonesia Stock Exchange (IDX) and the Indonesia’s Chamber Commerce and Industry (KADIN) have teamed up to set up incubators in Jakarta and Bali.

IDX president director Tito Sulistio said, the objective is to prepare them to launch initial public offering (IPO) on the bourse.

He said both parties have agreed to establish incubators in the two cities by July.

Citing government data, Tito Sulistio told DEALSTREETASIA that Indonesia currently has 57 million small and medium enterprises (SMEs), predominantly dependent on the mainstream banking industry for financing.

“We, together with KADIN, will set up incubators to nurture startups. We will facilitate them to get support from lawyers, accountants, venture capital funds and consultants to help them find funds through IPO, banks or venture capital,” he said.

The move comes in the backdrop of the country’s financial markets regulator OJK preparing a regulation that will provide a legal basis for SMEs, including startups, to generate funds as high as Rp1 trillion ($74.63 million) from IPO. The regulator is evaluating the IPO norms for startups and the exercise would be completed by June with an implementation timeline expected later this year.

IDX and OJK are in talks to set up a special board for SMEs or startup companies. Tito said, the idea is that SMEs or startup companies that have net intangible assets as low as Rp5 billion may also list shares on the Jakarta bourse.

He added, the agency is now in the process of releasing market maker rule to help boost liquidity in the proposed technology board.

Vice chairman of KADIN Sandiaga Uno added that there are around 50 SMEs, under the association, who are ready to take the IPO route in the next five years. He expects 10 SMEs to list their shares on the IDX.

“We will benefit if 5-10 SMEs in tech and e-commerce sectors would go for IPO. Companies like Bukalapak, Tokopedia, Traveloka and Bhinneka should be ready for IPO,” Sandiaga stated. In terms of regulations, Sandiaga said, the SMEs or startups need easier regulations to enable their listing.

Also Read : Want to invest in Indonesian startups? Show $3.6m in paid-up capital, tie up with local partner & obtain licence

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.