14 November 2018

Medan, (Analisa). The interest of family companies to become issuers (public companies) is still very small. Based on data from the Financial Services Authority (OJK) as of October 25, 2018, there are 47 new listed companies. This number has increased slightly compared to 46 companies last year.

“The number of issuers in Indonesia is still in DKI Jakarta as many as 537 companies, West Java and Banten 78, East Java 39, Central Java and DIY 11, Sumatra 13 and Central and Eastern Indonesia 10 companies,” said Rizky at the Go Public Offering Process Socialization event held by PT Panin Sekuritas Medan Branch in collaboration with the Office of the Financial Services Authority (OJK) Regional 5 Sumbagut to entrepreneurs who are members of the North Sumatra INTI Association at the OJK Office, last weekend.

Of the 13 listed companies in Sumatra, he added, seven are in North Sumatra.

Head of PT Panin Sekuritas, Darmin revealed that many family companies went bankrupt because the next generation was unable to run the company properly.

“Who doesn't know Nyonya Meneer herbal medicine company. The company used to be recognized as having the best management. But the company eventually went bankrupt. If this company switches to a public company, maybe it can survive until now,” said Darmin.

Head of OJK Regional Office 5 Sumbagut Lukdir Gultom before opening the event explained that OJK will help entrepreneurs who want their companies to go public. Especially now that the rules for becoming a public company the government has made concessions.

Fresh Funds

President Director of PT Mahkota Group Tbk (MGRO) Usli Sarsi explained the experience made from a family company to a public company.

Usli Sarsi said MGRO conducted an initial public offering (IPO) by releasing 20% of its shares on the Indonesia Stock Exchange (IDX) on July 12, 2018.

On that occasion, Usli Sarsi revealed, MGRO's share price increased sharply from IDR 225 per share at IPO to IDR 550 per share on November 9, 2018, or an increase of around 144%. 

This is one way to get fresh funds. By getting fresh funds from the bank, there are many requirements that must be met. Moreover, the loan period is only five to six years. This is very unlikely in palm oil companies. Not yet having made a profit, they already have to pay debts.

“It is possible that MGRO will experience a bad thing, namely that its profit will drop further if it does not conduct an IPO,” he said.

The company's profit is difficult to increase and even decline, especially in relation to the current condition of the palm oil business development.

Usli said that his party has designed development (expansion), especially entering the downstream of the palm oil industry to support the government's invitation to produce fuel oil mixed with 20% biodiesel (B20).

Feeling the joyful experience of MGRO after reincarnating into a public company, Usli Sarsi invited the socialization participants to quickly turn into a public company.

There are many benefits of becoming a public company, namely sustainability, transparency in company management, increased company popularity and others.

Answering PT Mabar Feed executives' questions about the difficulties faced by family companies to transform into going public, Usli Sarsi said one of the difficulties is to equalize views. “To get around this, we invite experts to explain the benefits and advantages of a public company,” suggested Usli Sarsi. (rin)

Source : http://harian.analisadaily.com/ekonomi/news/perusahaan-go-public-lebih-menguntungkan/648522/2018/11/14​