Indonesia’s commitment to becoming a key player within the digital economy is clear within the increasingly revolutionary initiatives it has undertaken. The latest is the Indonesia Stock Exchange’s (IDX) initiative to launch a dedicated technology section in 2019 to host initial public offerings (IPOs) of digital startups.
As reported by Reuters, IDX has worked with Indonesian financial industry regulator Otoritas Jasa Keuangan (OJK) to alter the IPO rules for startups. The rules ought to be modified or could deal with the character of startups. As currently, IPO rules require an organization to be profitable inside two years of listing.
IDX Director Nyoman Yetna Setia said that this regulation will make startups hesitate to do IPO in Indonesia. Therefore, a brand new initiative ought to be taken.
“With this new technology (and change in regulations), startups including Go-Jek will be able to list on IDX as they will have up to 6 years from the time of listing to become profitable,” Nyoman said.
The IDX initiative was welcomed by Indonesian Creative Economy Agency (BEKRAF) president Triawan Munaf, who also expressed hope that the platform would enable startups to access funds from local investors through the sale of shares.
Go-Jek is becoming the fundamental model for this initiative, as the corporate has develop into one in every of Indonesia’s first unicorns. Being a unicorn signifies that the corporate has reached a valuation of 1 billion dollars. As for the IPO, the full-service company said in May that it was considering moving to Indonesia, but no decision has been made yet.
From a passenger transport company to a one-stop app company, Go-Jek has already grown tremendously. Almost every thing from payments to food delivery services may be found on the app.
The Indonesian government itself hopes to develop into an emerging global center of the digital economy. While it still has to compete with neighbors like Singapore, Malaysia, Vietnam, the Philippines, and Thailand, Indonesia hopes to create more tech startups by 2020, value a combined $10 billion.
