International Capital Markets Newsletter – Winter 2021: Listing on the Indonesian Stock Exchange | Dechert srl


The Indonesian Stock Exchange (“IDX“) lists an average of 30 companies per year, but this number is increasing, with 30 companies already listed in September 2021. IDX is a major player in Asian capital markets, with 713 listings in January 2021, and one of the largest stock exchanges in the region. Indonesia is an emerging economic market that potentially presents a higher risk for foreign investors. Therefore, the proposed changes to improve the IDX listing regime could attract more inbound investment in Indonesian companies IDX has typically seen more traditional industries represented in its listings, with the IDX Composite report from January 2021 showing listings dominated by financials (37.1%), non-cyclical consumer goods ( 16.4%) and basic materials (11.9%). Meanwhile, tech companies only made up 0.6% of total registrations.

Proposed changes to the IDX listing rules

IDX and the Indonesian Financial Services Authority (“OJK“) consider changes to the listing rules which will aim, inter alia:

(i) relax the listing criteria to allow more companies to be listed through the lead board; and

(ii) authorize dual-class share structures, which allows certain classes of shareholders to retain the main voting rights; an equity structure that has traditionally been used in other capital markets for tech startups.

It is expected that such rule changes may make it easier for more tech companies to register.

Indonesian tech companies will also likely be encouraged by Bukalapak’s recent IPO, which was the largest ever on the IDX (see the case study below). In previous years, tech companies didn’t tend to be the biggest or most successful IPOs on IDX, but Bukalapak’s success may foreshadow a trend for new tech IPOs.

Case Study: Bukalapak

Bukalapak is an Indonesian technology company founded in 2010, specializing in e-commerce, digital finance and working with small and medium-sized businesses to enable them to gain an online presence. The company has grown rapidly and serves millions of small and medium-sized businesses as well as kiosk vendors and independent “micro-businesses”. After several rounds of funding, Bukalapak has secured a total of nearly US $ 800 million from investors such as Microsoft, sovereign wealth fund GIC and Alibaba’s Ant group. In August 2021, Bukalapak became the first of the Indonesian “unicorn” companies to be listed on the IDX, with a valuation of US $ 6 billion – the largest initial public offering to date on the IDX. . Industry comments focused on potential trends arising from Bukalapak’s success, especially with regard to technology as a growth sector. Its listing was seen as giving confidence to other Indonesian tech companies that might consider going public.

Indonesian tech companies

The success of Bukalapak’s IPO in conjunction with the proposed regulatory changes means other Indonesian tech companies are likely to follow suit and apply for the IDX listing via an IPO, potentially including Gojek Unicorns. / Tokopedia (e-commerce, carpooling and other services), Traveloka (online booking) and OVO (payment services). In May 2021, Gojek and Tokopedia announced a mega-merger, creating “GoTo” with a combined valuation of $ 25-30 billion. GoTo is backed by a large number of investors, including GIC and Alibaba Group Holding, showing a similar level of interest in Bukalapak ahead of its IPO. This puts GoTo in an ideal position to follow Bukalapak’s lead, and there are indications that they could do so in 2022. There are also early indications that small and medium-sized tech companies are following in Bukalapak’s footsteps, including RUN System, which offers enterprise resource planning (ERP) software solutions, and which were listed in September 2021.

PSPCs in Indonesia

The use of PSPCs has been rare in Southeast Asia, and they had not previously been deployed on the IDX. However, PSPCs are now starting to focus on targets in Southeast Asian markets, and a notable example is Singapore’s Grab, which is considering a merger of SPAC with Altimeter Growth that could value Grab at 39.6. billions of dollars. As the Indonesian IDX and tech market is both growing independently and nestled in the burgeoning tech market of Southeast Asia, it is likely that PSPCs will increasingly look to more to Indonesia to list local companies on the stock exchange.

Future trends in Indonesia

Southeast Asia’s tech market continues to grow, and a 2020 report from Google, Temasek, and Bain & Company estimates the region’s internet economy to triple to $ 300 billion in value by 2025. Indonesian capital markets are now highly concentrated. on technology listings, and market commentary indicate that Bukalapak has laid the groundwork for future activity in this space.


Dechert will continue to closely monitor PSPC market developments in Asia and the Indonesian capital markets, and will share any updates as they become available.


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