IDX: Fewer IPOs Do Not Signal Declining Investor Confidence<\/p>\n
Reporter<\/p>\n
July 13, 2026 | 08:57 pm<\/p>\n
TEMPO.CO, Jakarta - Indonesia Stock Exchange (IDX) assesses that the\ndecrease in the number of companies listed on the stock exchange does\nnot necessarily reflect a decline in investor confidence or prospective\nissuers in the capital market.<\/p>\n
IDX Director of Corporate Assessment, Saidu Solihin, stated that the\nnumber of general stock registration statement applications has not\ndecreased. However, some prospective issuers have canceled or postponed\ntheir stock listing plans, while others have not received approval from\nthe exchange.<\/p>\n
The reasons for this are financial conditions, operational aspects,\nlegal aspects, and business sustainability (going concern).\n\u201cNevertheless, the issuance of bonds and\/or sukuk as well as other\nsecurities instruments on the exchange has increased,\u201d said Saidu to\nTempo on Monday, July 13, 2026.<\/p>\n
Saidu explained that the issuance of bonds, sukuk, and other\nsecurities instruments has actually increased. According to him, this\ncondition indicates that companies continue to use the capital market as\na source of funding, albeit choosing different instruments according to\ntheir respective needs.<\/p>\n
He stated that the decision to go public is a strategic step\ninfluenced by internal and external factors. From an internal\nperspective, the company must be prepared in terms of financial\nperformance, organizational structure, and compliance with the\nrequirements set by the Financial Services Authority (OJK) and IDX. As\nfor the external aspect, the IPO decision is influenced by industry\nconditions, global and domestic economic developments, interest rates,\ninflation, government policies, and geopolitical dynamics.<\/p>\n
Despite the decrease in the number of IPOs, Saidu mentioned that the\nfunds raised have actually increased. A total of 26 companies raised\napproximately Rp18.1 trillion through IPOs in 2025, higher than the\nRp14.3 trillion obtained by 41 companies in 2024. According to him, this\ncondition indicates that listed companies have a larger scale of\nfunding.<\/p>\n
Hence, IDX evaluates the success of the capital market not only on\nthe number of companies conducting IPOs but also on the quality of\nissuers entering the exchange. He emphasized that the most important\nthing is not only the number of companies listing their shares, but also\nhow these companies have strong fundamentals, good governance, and are\ncapable of sustainable growth after becoming public companies.<\/p>\n
To enhance the quality of issuers, IDX has revised Regulation Number\nI-A concerning the Listing of Shares and Equity-Like Securities Other\nthan Shares in March 2026. The purpose of this regulation is to\nstrengthen the governance of listed companies and enhance investor\nprotection.<\/p>\n
In addition to strengthening regulations, IDX continues to provide\neducation and mentoring to potential companies through various programs,\nsuch as the Go Public Seminar, coaching clinics, masterclasses, and\none-on-one meetings. The exchange also provides a special page for\nprospective issuers as a source of information regarding the IPO process\nand preparation, as well as initial discussions with IDX to assess the\nreadiness for stock listing.<\/p>\n
Previously, economist and Capital Market Specialist and Founder of\nLBP Enterprises, Lucky Bayu Purnomo, assessed the sustainability of IPO\nas a positive indicator of the investment climate qualitatively. The\nfact that large-scale companies are still willing to list on the\nexchange amid economic pressures indicates confidence in the capital\nmarket.<\/p>\n
However, the medium-term quantitative trend shows a slowdown in the\nexpansion of the Indonesian capital market in terms of the number of new\nissuers. Investor confidence can be more accurately gauged by the\nquality of the pipeline. The current composition of the pipeline is\ndominated by large-asset-scale companies, with healthcare being the most\nprominent sector. This is a positive signal because investors seek cash\nflow certainty rather than growth stories.<\/p>\n
\u201cIn principle, this is correct, but it needs to be looked at\nproportionally. Data shows that as of July 9, 2026, only six companies\nhave realized new IPOs out of the target of 50 companies in IDX\u2019s 2026\nRKAB,\u201d said Lucky to Tempo on Sunday, July 12, 2026.<\/p>\n
According to him, this figure continues the trend of a structural\nslowdown, with the number of IPO issuers decreasing from 79 in 2023 to\n41 in 2024 and then to only 26 in 2025.<\/p>\n
Lucky sees that global volatility and uncertainty greatly influence\ncompanies\u2019 decisions to conduct an IPO. According to him, this condition\nis in line with the theory of market timing in capital structure, where\ncompanies tend to postpone IPOs when the cost of equity capital\nincreases due to market volatility, and expedite stock listings when\nmarket conditions are more conducive.<\/p>\n
He stated that global geopolitical factors are also one of the main\nconsiderations in fundraising activities in the capital market this\nyear. Conversely, high interest rates increase the cost of funding\nthrough loans, rendering stock issuance a more rational alternative to\ndebt-based financing.<\/p>\n
Lucky believes that investors are now much more selective in choosing\nprospective issuers. Investors tend to favor companies that demonstrate\nclear revenue growth, productive use of funds, reasonable valuations,\nand strong governance structures. Not only that, debt instrument\nissuance still dominates compared to IPOs.<\/p>\n
He stated that, as of now, there have been 71 issuances of debt\nsecurities and sukuk (EBUS) from 43 companies, with a total fundraising\nvalue of Rp76.1 trillion. This far exceeds the funds raised through\nstock IPOs. This condition indicates that businesses still consider debt\ninstruments as the main source of funding amid equity market\nturmoil.<\/p>\n
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