Jakarta | The Indonesia Stock Exchange (IDX) and the Financial Services Authority (OJK) are currently reviewing regulations to make it easier for Small and Medium Enterprises (SMEs) to go public through an Initial Public Offering (IPO), including revising the minimum capital requirement.
Currently, the minimum capital required for SMEs to be listed on the stock exchange is IDR 100 billion. However, OJK is reviewing new regulations that would allow SMEs with capital below that amount to access the stock market more easily.
"The current minimum capital requirement is IDR 100 billion, with a minimum share offering of IDR 40 billion. We are reviewing this so that more SMEs can enter the market, possibly lowering the capital threshold. However, it shouldn’t be too low to avoid illiquidity," explained Nurhaida, Chief Executive of Capital Market Supervision at OJK, during an interview at the OJK Building in Jakarta.
OJK continues to encourage SMEs that are financially prepared to enter the capital market. Additionally, OJK is preparing infrastructure to support SME-class issuers by establishing a dedicated SME board.
Currently, IDX only has a main board for large companies and a development board for mid-sized issuers. With the introduction of an SME board, it is expected that more small businesses can leverage the capital market as a source of funding.
"Some small and medium-sized companies are already listed. However, pushing more SMEs to enter the market requires investor interest. We plan to try this in the secondary market and see what patterns and models work best. The review is being conducted this year, and we hope to complete it within one semester," she added.
Meanwhile, Samsul Hidayat, Director of Company Valuation at IDX, mentioned that the exchange is currently classifying SME-related aspects such as capital, facilities, business models, and operational guidelines.
With more flexible regulations, SMEs are expected to grow faster through capital market funding, thus expanding their businesses and positively impacting the national economy.
(detikfinance.com)