JSX plan to accommodate new Internet firms hailed<\/p>\n
JAKARTA (JP): The plan of the Jakarta Stock Exchange (JSX) to
\nease its listing requirements, in order to accommodate startup
\ncompanies, received a warm welcome from Internet related firms.<\/p>\n
Mochtar Riady, chairman and founder of local business giant,
\nLippo Group, said on Tuesday that the new, less rigid listing
\npolicy would help stimulate the development of new Internet
\nbusiness.<\/p>\n
\"It's a good decision. If local markets continued to bar
\nInternet firms from listing here because they are only startup
\ncompanies, I guess they'd go list on overseas markets,\" he said
\non the sidelines of a seminar on the prospects of Internet
\nbusiness in Indonesia.<\/p>\n
He said some of the existing Internet companies had planned to
\nraise funds through the local exchanges, but had to delay their
\nplans due to the country's rigid listing requirements.<\/p>\n
According to Mochtar, Lippo Group will launch some portals,
\nincluding retail portal LippoShop.com, brokerage and news portal
\nLippoNews.com, banking portals Lippo-e-bank.com and on-line
\ninsurance marketing through Lippo-e-Life.<\/p>\n
According to Benny Haryanto, director of Indonesian Central
\nSecurities Depository, so far there is only one local Internet
\nrelated company, PT Tanjung Bangun Semesta, that has listed its
\nshares here on the Surabaya Stock Exchange (SSX).<\/p>\n
\"Surabaya exchange is the only choice available for small
\ncompanies,\" he said, adding that Internet companies would prefer
\nto list their shares on the JSX, which is bigger and more popular
\nwithin foreign investors.<\/p>\n
JSX's president, Mas Achmad Daniri, said last week his office
\nwas currently seeking approval from the Capital Market
\nSupervisory Agency (Bapepam) to change the listing requirements
\nto allow startup companies to raise funds on the local market.<\/p>\n
\"If approved, new companies such as Internet and mining
\ncompanies can list their shares on the market although they are
\nnew and have not booked any profit,\" he said, adding that the
\napproval was expected to be issued sometime next month.<\/p>\n
The existing stock market regulations allows only well
\nestablished companies with adequate financial records to raise
\nfunds on the market.<\/p>\n
Daniri said JSX also planned to introduce three different
\ntrading boards for different types of companies.<\/p>\n
He said the first or the main board would be reserved for
\nestablished companies, the second board for prospective startup
\ncompanies, and the third for companies offering stocks with a
\nnominal value below Rp 500 per share.<\/p>\n
\"Internet startup companies as well as mining startup firms
\ncan list their shares on the second board,\" he said.<\/p>\n
Benny said many local Internet firms were waiting for
\nBapepam's decision to allow the listing of startup companies on
\nthe JSX.<\/p>\n
\"Some of the existing local Internet firms actually have very
\ngood potential,\" he said, citing the local portal AsiaOne.com as
\nan example.<\/p>\n
Several of the newly established e-companies, such as news
\nportal Detik.com, have announced plans to conduct an initial
\npublic offering (IPO). Detik.com is jointly owned by PT Agrakom
\nand Hong Kong-based venture capital firm techpacific.com, and
\nconsumer-based portal www.kemana.com, which is owned by
\ninternational business information company, Castle Group, and
\nIndia-based Internet application developer Edge NetVentures.<\/p>\n
Several listed firms like Asuransi Lippo Life and electronics
\nand office equipment suppliers Astra Graphia, Multipolar and
\nMetrodata Electronics, have announced their plans to establish
\nInternet companies. (cst)<\/p>",
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