29 March 2019

Medan, (Analisa). In supporting and encouraging companies in North Sumatra to advance and develop through funding in the Capital Market, PT Bursa Efek Indonesia, PT Kliring Penjaminan Efek Indonesia and PT Kustodian Sentral Efek Indonesia in collaboration with the Indonesian Entrepreneurs Association (Apindo) North Sumatra held a go public workshop with the theme “Who's Afraid to Go Public”, in Medan, Tuesday (26/3).

Head of the Capital Market Supervision Section of the Financial Services Authority (OJK), Risca Bernadetta explained the process of public offering of shares (IPO). The benefits that can be felt by companies conducting IPOs are obtaining flexible funding, capital structure and expansion finance and working capital. There is a 5% tax intensive for companies whose public ownership is at least 4% and meets certain other requirements.

“The funding obtained from the IPO can be used to improve the capital structure and increase the company's financial capacity for expansion and working capital,” he said.

Head of the Company Valuation Division 3 of the Indonesia Stock Exchange, Goklas Tambunan reviewed the company's funding opportunities towards optimal growth through the Indonesian capital market.

One of the funding options is through the capital market by involving public investors. Funding has an important role to increase business capacity and accelerate company growth. “Funding through a public offering of shares has access to a wide amount of funding, not limited by tenor and flexible returns,” he said.

In contrast, funding through family and friends or company owners is conditioned by the parent's cash flow conditions, not limited by tenor and flexible returns. Through bank guarantors, the average tenor is 4-5 years, access to the amount of funding is relatively limited and limited by the debt to equity ratio. While debt securities have an average tenor of 1-10 years, access to the amount of funding is broad and limited by the debt to equity ratio.

Director of Panin Sekuritas, Prama Nugraha gave tips on how to prepare for an IPO. There are several stages of IPO, namely IPO preparation, registration of securities registrar at IDX, registration statement to OJK, determination of IPO structure and listing. Documentation that needs to be prepared in registering an IPO is financial, legal, and disclosure aspects.

‘Success Story’

The workshop also presented two CEOs who were successful in developing their companies after going public.

Ridwan Goh, President Director of PT Mark Dynamics Indonesia Tbk, said that going public was one of the reasons for the company's development by building a new factory on Jalan Utama Dusin I, Dalu X-A Village, Tanjung Morawa District, Deliserdang.

​After the company goes public, the issuer's concern is to increase shareholder value by delivering a business plan and long-term business prospects.

Director of PT Mahkota Group Tbk, Usli Sarsi said that the most difficult obstacle for family companies is to unite perceptions of going public coupled with other issues such as tax reports and so on.

“The obstacle in deciding to go public is the longest because there is no common ground between all company owners,” he said.

A strong reason to go public the company has a business plan until 2022 with the construction of a refinery plant, kernel cruching plant and fractionation. Cooking oil packaging, bio diesel and Bio-CNG development.

Construction of a 12 MW power plant, acquisition of a 5000 hectare oil palm plantation and oleochemical production. By going public, the business plan will be more achievable. (rin)

Source :  http://harian.analisadaily.com/ekonomi/news/memajukan-perusahaan-melalui-pendanaan-pasar-modal/713836/2019/03/27