Indonesia’s capital market continues to shine, with 34 companies conducting initial public offerings (IPOs) by the third quarter of 2024. This achievement places Indonesia seventh globally in IPO activity, a reflection of the country’s growing financial potential.
Mahendra Siregar, Chairman of the Financial Services Authority (OJK), stated that the high level of fundraising in Indonesia’s capital market is supported by stable domestic economic conditions.
“The financial services industry performed favorably in the third quarter of 2024, with total capital market fundraising reaching IDR 159.51 trillion by September 2024,” Mahendra reported during a hearing with Commission XI of the House of Representatives on Monday, November 18, 2024.
From the IDR 159.51 trillion raised, IDR 119.15 trillion originated from debt securities, sukuk, and continuous public offerings. Rights issues contributed IDR 36.3 trillion, while IPOs raised IDR 4.06 trillion.
OJK noted that Indonesia’s 34 IPOs make it the seventh most active country for public listings this year. In comparison, India recorded the highest number of IPOs globally, with 258 companies, followed by the United States with 130, China with 70, Japan with 53, South Korea with 46, and Hong Kong with 45.
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According to the latest data from the Indonesia Stock Exchange (IDX), an additional 29 companies are in the IPO pipeline. The largest representation comes from the consumer non-cyclicals and energy sectors, each contributing five companies.
Other sectors include basic materials with three companies, healthcare with three, property and real estate with three, industrials with three, financials with three, consumer cyclicals with two, and infrastructure and logistics with one company each.
With an increasingly vibrant capital market, Indonesia demonstrates its growing importance in the global financial landscape, fostering optimism for its continued development. With Indonesia being the 7th largest country in the world in terms of IPO activity, it shows investor optimism about the future of this economy.
