MINISTER of Cooperatives and SMEs (MenKopUKM) Teten Masduki continues to encourage SME players to move up a class and expand funding sources through IPO (Initial Public Offering) and obtain funding through the capital market.
“We, together with the Indonesia Stock Exchange (BEI), are trying to make SMEs jump their businesses. Not continue to be small and medium,” said Minister of Cooperatives and SMEs Teten Masduki in the Capital Market Forum which is a series of SME IPO programs in collaboration between the Ministry of Cooperatives and SMEs (KemenKopUKM) and BEI in Surabaya, East Java, Wednesday (17/7).
IPO itself is a fundraising step used by companies through the capital market, where the company sells its shares to the public for the first time.
Furthermore, Teten added that this year his party is targeting 10 SMEs to conduct an IPO. To that end, the Ministry of Cooperatives and SMEs together with the IDX are committed to intensifying socialization steps to encourage SMEs to go public on the Stock Exchange.
“So we agreed to take the initiative. One of them is through this event to invite SMEs. Come on, don’t be afraid to enter the stock exchange,” said Teten.
On this occasion, Teten also said that his party is currently trying to offer various solutions for SMEs to carry out an IPO. One of them is by forming a business holding.
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“I offer and try to invite similar businesses to create a holding. So similar businesses are combined so that there is an IPO so that there is acceleration. According to the name on the Stock Exchange, there is an Acceleration Board. So that it is fast, don’t do it alone. We are happy that SMEs are side by side so that they join and do an IPO. This is also an alternative besides collaborating with investors,” he said.
Teten emphasized that an IPO is very important so that SMEs can develop their business capacity into large businesses.
“SMEs can seek cheaper and larger financing, namely in the Capital Market so they can accelerate. So let’s be enthusiastic to move up a class and one way is by IPO,” said Teten.
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In the same place, the President Director of the Indonesia Stock Exchange (IDX) Iman Rachman said that to date, there have been 44 small and medium-scale asset companies listed on the stock exchange through the acceleration board.
“Since 2019, BEI has created a special trading board for small and medium asset companies. So there is the Main Board, Development Board and New Economic Board. We created a special board for small and medium companies called the Acceleration Board, the number is currently 44 companies and there has been 1 company promoted to the Development Board in November 2023. It has moved up a class,” said Iman.
According to him, companies on the Acceleration Board have assets on average above Rp10 billion and the largest reaches around Rp250 billion. Assets below that figure, SMEs can utilize Securities Crowdfunding facilities for financing.
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In addition, Iman said that BEI also has an IDX Incubator which is a place to facilitate companies that want to learn the IPO process.
“IDX Incubator is already in Jakarta, Surabaya, and Bandung. We facilitate companies that want to learn the IPO process. So, like learning to make financial reports and meet investors. We prepare the experts. We are also ready to bridge the introduction with capital market supporting professions that will support the company’s IPO process, such as underwriters, public accounting firms, law firms, notaries and others,” he said.
Meanwhile, Acting Deputy for SMEs Temmy Satya Permana explained that this activity is a follow-up to the signing of a memorandum of understanding on cooperation between the Ministry of Cooperatives and SMEs and the IDX in 2023, namely the SME IPO program, a mentoring program for SMEs to enter the capital market ecosystem.
The series of activities of the SME IPO Program consist of capital market forums, training, coaching clinics, and business matching. This year’s Capital Market Forum was held in the cities of Yogyakarta, Surabaya, Makassar, and Jakarta.
The SMEs present at this event numbered around 250 companies and were recommendations from KADIN, HIPMI, IDX Incubator, and fostered by the Ministry of Cooperatives and SMEs.
“So far, the perception of entering the stock exchange is difficult and expensive, so we want to change that mindset, especially for SMEs. Hopefully, this program can encourage our SMEs to move up a class, be independent, and be competitive,” concluded Temmy. (Z-6)
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