Indonesia’s stock market raised $5b in 2016, contributed $1.6b in gains

Photo by IDX

The Indonesian stock market had raised nearly Rp 700 trillion ($5.2 billion) in funding last year while contributing Rp 215 trillion ($1.6 billion) in gains, the Indonesian Stock Exchange (IDX) director Tito Sulistio said. The numbers represented a growth of 20 per cent and 15 per cent, respectively.

The largest contributor for the gains was the capital gain or profits acquired from shares and bonds, which totalled Rp 148 trillion ($1.1 billion), followed by dividend gains of Rp 39.85 trillion.

“The capital market also made a significant contribution for the tax sector, from taxes paid from dividends, interests, and many other taxes,” Sulistio told reporters.

“It will continue to grow, despite many challenges ahead. For one, we need a minimum of d30 new IPOs each year if we want to keep up with, let’s say, Thailand,” he added.

This year, the IDX is expecting to see as many as 30 companies going public, almost double the number of firms that listed their shares on the main board last year. At a mere 17, the number of Indonesian IPOs was much lower than the ambitious initial target of 35.

But this time, the IDX is rather optimistic that the target will be realized. Sulistio had said that he was “intensively” talking to over 140 companies that have expressed interest for going public.

“Among the companies that I’ve talked to, there are three who are already listed in Singapore, despite having 50 per cent of their assets in Indonesia. They have been pushed to do a dual listing,” Sulistio had said.

In total, there are 52 companies with massive assets in Indonesia but are listed in other countries. These companies, operating in the mining, real estate, and the logistics industry, have a total market capitalization of $15.2 billion.

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