Online forum Kaskus and ecommerce platform Bukalapak are in talks with Indonesian Stock Exchange (IDX) about the possibility of going public this year.
Kaskus is Indonesia’s largest online platform founded by Andrew Dawis in 1999, while Bukalapak is one of the country’s leading trading platforms. They are not the only Indonesian ecommerce company to do so.
Director of IDX, Tito Sulistio, said the companies are now facing challenges in preparing legal and administrative matters. However, he is optimistic the challenges can be overcome. “If they commit, the process would take about four to five months only,” he said quoted by local media Kontan.
The IDX and the Indonesian Chamber of Commerce (KADIN) are reportedly launching a special board and incubator program to support Indonesian tech startups to go public. The board will facilitate startups to prepare them for IPOs.
The plan comes in the backdrop of the country’s financial markets regulator Financial Services Authority (OJK) preparing a regulation that will provide a legal basis for SMEs, including startups, to generate funds as high as Rp1 trillion, approximately USD$74.63 million from IPO.
The regulator is evaluating the IPO norms for startups and the exercise would be completed by June with an implementation timeline expected later this year. IDX and OJK are in talks to set up a special board for SMEs or startup companies. The idea is that SMEs or startup companies that have net intangible assets as low as Rp5 billion may also list shares on the Jakarta bourse, said Tito.
Last year, Indonesia’s Minister of Communications and Information also expressed his vision for Indonesia’s ecommerce to go public this year. The move is seen as a positive step towards the country’s goal of establishing a $130 billion digital economy by 2020.
A version of this appeared in Deal Street Asia on June 20. Read the full story here.