IDX: Decline in IPOs Does Not Reflect Falling Investor Confidence
The Indonesia Stock Exchange (IDX) has assessed that the decline in the number of companies listing on the exchange does not necessarily reflect a decrease in confidence among investors or prospective issuers in the capital market. IDX Director of Corporate Assessment Saidu Solihin stated that the number of share registration statement applications has generally not decreased. However, some prospective issuers have cancelled or postponed their share listing plans, while others did not obtain approval from the exchange. The reasons include considerations of financial condition, operational aspects, legal issues, and going concern status. “Nevertheless, the issuance activity of bonds and/or sukuk and other securities instruments on the Exchange has increased,” Saidu told Tempo on Monday, 13 July 2026.
Saidu explained that the issuance activity of bonds, sukuk, and other securities instruments has actually increased. According to him, this condition shows that companies continue to utilise the capital market as a source of funding, albeit by choosing different instruments according to their respective needs. He conveyed that the decision to become a public company is a strategic step influenced by both internal and external factors. Internally, companies must have readiness in terms of financial performance, organisational structure, and compliance with requirements set by the Financial Services Authority (OJK) and the IDX. Externally, IPO decisions are influenced by industry conditions, global and domestic economic developments, interest rates, inflation, government policies, and geopolitical dynamics.
Despite the decline in the number of IPOs, Saidu said the value of funds raised has actually increased. In 2025, 26 companies raised approximately Rp 18.1 trillion through IPOs, higher than the Rp 14.3 trillion raised by 41 companies in 2024. According to him, this condition indicates that the companies listing have a larger funding scale. Therefore, the IDX believes that the success of the capital market is not only measured by the number of companies conducting IPOs, but also by the quality of issuers entering the exchange. He emphasised that the most important aspect is not just the number of companies listing shares, but how these companies have good fundamentals, strong governance, and the ability to grow sustainably after becoming public companies.
To improve the quality of issuers, the IDX updated Regulation Number I-A concerning the Listing of Shares and Equity-Type Securities Other Than Shares in March 2026. This regulation is aimed at strengthening the governance of listed companies while enhancing investor protection. In addition to regulatory strengthening, the IDX also continues to provide education and assistance to potential companies through various programmes, such as Go Public Seminars, coaching clinics, masterclasses, and one-on-one meetings. The exchange also provides a dedicated page for prospective issuers as a source of information regarding the IPO process and preparation, as well as facilities for initial discussions with the IDX to discuss share listing readiness.
Previously, economist and Capital Market Specialist and Founder of LBP Enterprises, Lucky Bayu Purnomo, assessed that the sustainability of initial public offerings is a positive indicator of the investment climate, which is qualitatively correct. The fact that large-scale companies are still willing to list on the exchange amidst economic pressures demonstrates confidence in the capital market. However, quantitatively, the medium-term trend shows that the deepening of the Indonesian capital market in terms of the number of new issuers is actually slowing down, not strengthening. Investor confidence is more accurately read from the quality of the pipeline; the current pipeline composition is dominated by large-scale asset companies, with the healthcare sector being the most prominent. This is a positive signal because investors are pursuing cash flow certainty, not just growth stories.
“In principle, it is correct, but it needs to be viewed proportionally. Data shows that as of 9 July 2026, IPO realisation had only reached six companies out of the IDX’s 2026 RKAB target of 50 companies,” Lucky told Tempo on Sunday, 12 July 2026. This figure, according to him, continues a structural slowdown trend, with the number of IPO issuers shrinking from 79 issuers in 2023, to 41 issuers in 2024, and only 26 issuers in 2025. Lucky observed that global volatility and uncertainty greatly influence companies’ decisions to carry out an IPO. He said this condition aligns with the market timing theory in capital structure, where companies tend to postpone IPOs when the cost of equity increases due to market volatility, and accelerate share listings when market conditions are more conducive.
He stated that global geopolitical factors are also one of the main considerations in capital market fundraising activities this year. On the other hand, high interest rates increase the cost of funding through loans, making share issuance a more rational alternative compared to debt-based financing. Lucky opined that investors are now much more selective in choosing prospective issuers. Investors are considered to prefer companies with clear revenue growth, productive fund usage plans, reasonable valuations, and strong controlling structures. Furthermore, the issuance of debt instruments still dominates compared to IPOs. To date, he said, there have been 71 emissions of Debt Securities and Sukuk (EBUS) from 43 companies with a total fund raised reaching Rp 76.1 trillion, far greater than the funds raised through share IPOs. This condition shows that business actors still make debt instruments the main source of funding amidst equity market turmoil.