Indonesia's Stock Exchange redoubled efforts in recent years to deepen the economy's capital markets, with stock market capitalization still low at 50% of annual GDP. Access to funding through stocks and bonds is vital for local businesses to grow stronger ahead of the launch of the AEC.
Though the IDX’s market capitalization has grown from just over a third of the country’s GDP in 2010 to almost half by 2013, Indonesia’s equity market remains small compared to regional peers. This section provides an overview of the key trends and an outlook for the future of the bourse.
Following an eventful end to 2013 that saw the postponement of several public listings, the Indonesian Stock Exchange (IDX) marked the start of a new year with the announcement of 30 companies expected to conduct an IPO in 2014. Headlining those going public are industry leaders in a host of key sectors such as infrastructure and public transport
Rapid economic development, low public debt and a young population provide Indonesia with perfect ingredients for a thriving mutual fund industry. Global investment companies, therefore, are reassessing opportunities to manage Indonesians' growing wealth.
In spite of Indonesia’s recent lacklustre economic performance, private equity investors seem to remain hopeful over the prospects in Southeast Asia’s largest market. The private equity industry is evolving slowly, but its players are focusing greater attention on the country which has seen some recent high profile successes.
Indonesia has over the last few years been heralded as the darling of Asia’s private equity market. However, a recent dip in economic performance has since worked to dampen expectations for private equity opportunities in 2014. To better understand where it stands today, it is necessary to view Indonesia’s private equity market as one on the precipice of a new cycle.
Bourse Name: Bursa Efek Indonesia (IDX)
Main Index: Jakarta Composite Index
Market Capitalisation: 4,872 trillion IDR (December 2015)
Annual Performance: -11.47% (2015)
Record High: 5,523.29 (April 2015)
Number of Issuers: 523 (2015)
Top Stocks by Market Capitalisation: HM Sampoerna, BCA, Telkom, Unilever, BRI, Astra International, Bank Mandiri, Gudang Garam, BNI.
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