Airlangga: Continued IPO Activity a Positive Indicator of Investment Climate

Coordinating Minister for Economic Affairs Airlangga Hartarto has stated that initial public offering (IPO) activity on the Indonesia Stock Exchange (IDX) serves as a positive indicator of the investment climate. To support this, the government continues to encourage capital market deepening as a source of long-term financing to strengthen the business world whilst maintaining the momentum of national economic growth. “Congratulations and a breakthrough for the new President Director of the Indonesia Stock Exchange, this is the first IPO since he took office,” said Coordinating Minister Airlangga at the IDX Trading Opening event, quoted in Jakarta on Thursday. This IPO momentum is special as it is the second IPO in Indonesia in 2026, taking place amidst fairly high stock market dynamics. Nevertheless, according to Airlangga, the government remains committed to ensuring that the capital market continues to function optimally. He noted that the continuation of IPO activity reflects business actors’ optimism regarding the prospects for the national economy, which remains well maintained. In the first quarter of 2026, the Indonesian economy recorded growth of 5.61 per cent, demonstrating strong resilience amidst global economic dynamics. He said this positive performance was supported by maintained domestic consumption, increased investment activity, and various reforms continuously undertaken by the government to strengthen the business climate. One of the main supporting sectors for economic growth is the food and beverage industry. In the first quarter of 2026, this sector contributed 7.31 per cent to the national Gross Domestic Product (GDP), an increase compared to the same period the previous year, which was 7.20 per cent. The food and beverage industry also recorded growth of 7.04 per cent, driven by increased demand during the National Religious Holiday period. From an investment perspective, the food and beverage industry continues to show positive performance. In the first quarter of 2026, Foreign Direct Investment (FDI) realisation in this sector reached Rp10.48 trillion, whilst Domestic Direct Investment (DDI) reached Rp16.34 trillion. He said this achievement reflects high investor interest in the real sector, whilst also showing that Indonesia’s domestic market remains vibrant, public purchasing power is maintained, and the national investment climate is on the right track. The government is also continuing reforms in the capital market sector to maintain investor confidence and enhance the competitiveness of the national financial market. The decision by global index provider MSCI to once again retain Indonesia in the Emerging Market category in its June 2026 evaluation reflects the strong fundamentals of the national economy as well as the increased credibility of the Indonesian capital market in the eyes of global investors. The continuation of IPO activity in the capital market is expected to further strengthen the capital market’s function as a source of long-term financing for the business world. Through funds raised from the public, companies can accelerate business expansion, increase production capacity and innovation, and create more jobs, thereby making a greater contribution to national economic growth. Looking ahead, the Coordinating Minister for Economic Affairs stated that the government, together with the Financial Services Authority (OJK) and the Indonesia Stock Exchange, will continue to strengthen capital market reforms through increased transparency, governance, and investor protection. These measures are expected to further deepen the Indonesian capital market, expand financing access for businesses, and strengthen the financial sector’s contribution to supporting inclusive and sustainable economic growth. “So there are six more issuers who will subsequently list their initial shares,” the Coordinating Minister concluded.