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These are the benefits and advantages of going public companies according to the IDX

Reporter: Akhmad Suryahadi | Editor: Komarul Hidayat

KONTAN.CO.ID – JAKARTA. The Indonesia Stock Exchange (IDX) continues to encourage entrepreneurs to do so initial public offering (IPO) or listing the company on the capital market. This process is needed if a company intends to change its status to a public company (go public).

Until August 2019, the number of public companies that listed their shares on the IDX reached 648 issuers.

According to the IDX, there will be many benefits and advantages that companies will receive if they decide to do so go public. What are the benefits?

IDX Director of Company Assessment I Gede Nyoman Yetna said the first benefit for public companies is getting unlimited funding.

This funding can later be used to increase business capacity and accelerate company growth. “Ideas that used to be imagined can now be realized because of the funds,” said Nyoman during a Go Public seminar at JCC Senayan, Friday (23/8).

Also Read: IDX picked up the ball to encourage companies to seek funding from the capital market

The second benefit is to facilitate the expansion and development of the company. Nyoman gave examples of several family companies that have now become large because they have become public companies. For example, PT Kalbe Farma Tbk (KLBF, member of the Kompas100 index). Even now, Kalbe Farma is one of the leading pharmaceutical companies in Asia which is able to absorb 17,000 workers.

The next benefit is the ease of getting strategic partners. With information disclosure, investors and partners can find suitable companies to work with.

Nyoman gave an example of PT Chitose International Tbk (CINT) which received a partner from Japan due to information disclosure. “There are advantages intangible what about when information is exposed, “Nyoman continued.

And what is no less important is being a company go public certainly increase the performance and professionalism of the company. In investing, investors will naturally choose companies that are professional, clear, and prospective.

Also Read: OJK has not revised its IPO target this year

The demands and provisions set by regulators and authorities improve the management of an issuer to become more professional. Starting from the standards for preparing financial reports to disclosure of information related to performance.

For that, he hopes that entrepreneurs will be interested in entering the capital market. Nyoman wants them to choose the capital market as a medium for business sustainability, especially for those who have / inherited family businesses.

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