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