Listing

Stock listed in the Indonesia Stock Exchange is classified into 2 listing boards: Main Board and Development Board. The placement of the Issuer and prospective Issuer’s Listing depends on the fulfillment of the initial listing requirements on each Board.

Main Board is intended for listed big companies that have track records, while the Development Board is intended for companies that have not yet fulfill the listing requirements of the Main Board, including prospective companies that have not produce any profits, and companies that are on the state of reorganization.

General Requirement Listing on the Jakarta Stock Exchange

Issuers can list their stocks in the Exchange if they have already fulfilled the following requirements:

1. Registration statement has been stated effective by the Bapepam
2. The issuer is not in lawsuit that could influence the existence of the company
3. Its business field is directly or indirectly not prohibited by the prevailing law of Indonesia
4. Particularly for issuers in manufacturing field, they are not in pollution problem (this is proved by the AMDAL certificate) and for issuers in forestry field must have ecolabelling certificate
5. Especially for issuer in mining field, it must have a managing license that is still valid at least for 15 years; have at least 1 Mining Authority Contract or Regional Mining License; one director with technical skill and experience in mining field; and have had a proven deposit or equivalent
6. Especially for business that needs managing license (like highway construction, forestry), it must own the license at least for 15 years.
7. Subsidiary and/or holding company of a listed company in Jakarta Stock Exchange that contribute 50% of its consolidation income to the listed company cannot be listed in the Exchange
8. Financially related requirements of the initial listing must base on the last audited annual financial report.

Criteria of Initial Listing on the Main Board

Prospective issuers will be listed for the first time in the Main Board if they have fulfilled the requirements below:

No	Criteria
1.	Have fulfilled general requirements for stock listing
2.	Until the proposal of listing, the company has been running its operational activities in the same core business for at least 36 months in sequent
3.	Have audited the last three years Financial Reports, and have received Proper Opinion Without Exception for the last 2 years audited financial report and Interim Audited Income Statement (if exists)
4.	Based on the last Audited Financial Report, the company must have at least an amount of Rp 100,000,000,000 (one hundred billion rupiah) as Net Tangible Asset
5.	The amount of shares owned by the minority shareholders after public offering is at least 100,000,000 (a hundred million) shares or 35% of paid up capital (depends on which one is smaller)
6.	The number of shareholders is at least 1.000 (a thousand) shareholders, who already have accounts in one of the Exchange Memberss, with the provisions below: For issuer that performs public offering, the number of its shareholders is the number of shareholders after the initial public offering. For issuer that comes from a public company, the number of its shareholders is the last number of shareholders at least 1 month before proposing the listing application. For issuer listed in another Bourse, the number of its shareholders is counted based on the average of the last six months.

Criteria of Initial Listing on the Development Board

No	Criteria
1.	Have fulfilled general requirements for stock listing
2.	Until the proposal of listing, the company has been running its operational activities in the same core business for at least 12 months in sequent
3.	Until the proposal of listing, the company has been running its operational activities in the same core business for at least 12 months in sequent
4.	Have net tangible assets of at least Rp 5,000,000,000 (five billions Rupiah)
5.	If issuer experiences operating loss or does not produce any profit yet or operates less than 2 years, it is obligated to: achieve profit and net income on the end of the second book year based on the financial projection announced in the Exchange. Especially for issuer, whose field of business needs longer time to reach break event point (such as infrastructures, agricultures of hard plants, Forest Managing Right concession or Industry Plan Forestry or others business field related to public services) shoul achieve profit and net income at least at the end of the sixth year since the listing
6.	The amount of shares owned by the minority shareholders after public offering of five days before the listing proposal (for public company which shares have not been listed) is at least 50,000,000 (fifty million) shares or 35% of paid up capital (depends on which one is smaller)
7.	The number of shareholders is at least 500 (five hundred) shareholders, who already have accounts in one of the Exchange Members, with the provisions below: For issuer that performs public offering, the number of its shareholders is the number of shareholders after the initial public offering For issuer that comes from a public company, the number of its shareholders is the last number of shareholders at least 1 month before proposing the listing application For issuer listed in another Bourse, the number of its shareholders is counted based on the average of the last six months
8.	Especially for issuer who is going tohold an IPO, the Underwriter has to use the principle of full commitment

Process of Going Public

Companies have many alternatives of financing source, internal or external. Alternative internal financing generally comes from the retained earning, while external financing can come from creditors in form of debt, other forms of funding or by issuing debenture papers, and even financing by participating in stock (equity). Financing by participation mechanism is usually done by selling company’s stocks to the public or often known as going public.

To go public, companies have to make internal and documents preparation in accordance to the requirements needed for going public, and fulfill all the requirements stated by the Bapepam. Public offering or go public is the activity of stock or other marketable securities offering by an issuer (going public firm) to the public based on the procedures arranged in the Capital Market Law and its Implementation Rules.

Public offering accommodates these activities:

• Primary Market Period, when stocks are offered to investors by underwriter through selected Selling Agent;
• Shares subscriptions, the allocation of investors’ securities order according to the available amount of securities.
• Stock allotment at the Exchange, when stocks are traded in the Exchange.

Stocks public offering procedures can be categorized into these 4 steps:

1. Preparation Step
   In this step, the company has to prepare everything needed the public offering process. First, the company, who will issue the stocks, holds Shareholder General Meeting and asks the approval from shareholders. After the approval, the issuer will appoint the underwriter, market institutions and supporting professions that consists of:

• Underwriter. Underwriter is the party who has the most involvement in assisting the issuer to go public. Underwriter’ has to prepare all the documents, prospectus, and giving the guarantee of the issuing process.
• Public accountant (Independent Auditor). Public accountant is responsible to audit or check the income statement of the issuer.
• Appraisal Company for appraising the fixed assets owned by company and accounting proper value of the fixed assets.
• Law consultant for giving legal opinion.
• Notary for making amendments of the company’s basic budget and various agreement underlying the public offering, and notes of meeting.

2. Registration-Statement Submitting Step
   In this step, the company will complete the registration by giving supporting documentations to the Bapepam until the Bapepam states that the Registration Statement is effective.
3. Shares Offering
   In this step, the issuer offers its stock to the investors’ society. Investors can buy the shares through their appointed selling agents. Offering period is usually about three trading days. Worth to notice, that not all of the investors’ desires are fulfilled in this level. For instance, 100 million shares are released in the market, while the amount of shares that the investors want to buy is 150 million shares. If the investors could not get the shares at the primary market, they can buy it in secondary market after the stock is listed in exchange.
4. Shares Listing in the Exchange
   After selling the shares in primary market, the stocks are listed in the Exchange. In Indonesia, the stocks could be listed in the Indonesia Stock Exchange (IDX), Surabaya Stock Exchange, or even in both exchanges.

Equity

Stock (Share) is one of the most popular securities available. If a company wants to raise capital, one of its options is to issue stock. Stock also offers interesting return rate for its investors. That is why most investors choose stock for their investment.

Stock can be defined as a sign of ownership of an individual or institution in a corporation. The person or institution who owns the stock can claim on the company's earnings, assets, and rights to attend its General Meeting of Shareholders.

Basically, there are two benefits for stock investors:

1. Dividend
Dividend is the earning given to the company's shareholders from the company's income. The amount of dividend paid to the shareholders is decided in the Company's Annual General Meeting. To receive dividend, a buyer of a stock must own the stock for a relatively long period until it passes its ex-dividend date, where he/she will be acknowledged as the shareholder who has the right to obtain the dividend.

2. Capital Gain
Capital gain is the positive different between the purchase price and the selling price of a stock. Capital gain is formed through the stock trading activities in the secondary market. For example, an investor bought ABC’s stock for Rp 3,000 per share and then sold it for Rp 3,500 per share. It means the investor receive capital gain of Rp 500 for every sold share.

However, like other instruments of investment, stock has its own risks:

1. Capital Loss
It is the reverse of Capital Gain. It is a condition when the stock is sold for a price that is lower than its original purchase price. For instance, an investor bought the stock of PT XYZ for Rp 2,000 per share, but aftermath the stock price fell to the level of Rp 1,400 per share. Afraid of continuous declines, the investor sells the shares for Rp 1,400 per share. The investor has retained a capital loss of Rp 600 per share.

2. Liquidity Risk
A Company, whose shares are owned by public, is stated for bankruptcy by the Court or is being dismissed. In this case, the claim of the shareholders' rights will get the last priority after all the company’s liabilities have been settled (through the selling the company’s assets). The rest of the company’s wealth, if exist, will be distributed proportionally to the shareholders. However, if there is no rest left, the shareholders will not receive anything. This is the worst condition a shareholder might go through. Thus, a shareholder needs to monitor every development happens in the company.

In the secondary market or daily stock trading, stock price fluctuates. Stock price is formed by the demand and supply of the stock, while the supply and demand of a stock are influenced by many factors, such as the company and industry’s performance, the macro factors (interest rate, inflation, currency rate), the non-economical factors (social and political conditions), and so on.

Introduction To Capital Market

Capital Market is the market in which long term financial instruments, such as bonds, equities, mutual funds and derivative instruments, are traded. Capital Market serves as an alternative for a company's capital resources and public investment. It also facilitates the infrastructures needed for the seling and buying process and other related activities.

Financial instruments traded in the Capital Market are long term securities (a period of more than 1 year). They consists of stocks, bonds, warrants, rights, mutual funds, and other derivative instruments (options, futures, etc.).

Capital Market Law Number 8 Year 1995 defines Capital Market as “the activity of trading and offering securities to the public, the activity of a public company with respect to securities it has issued, and the activities of securities-related institutions and professions.”

Capital Market plays an important role in the economy of a country because it serves two functions all at once. First, Capital Market serves as an alternative for a company's capital resources. The capital gained from the public offering can be used for the company's business development, expansion, and so on. Second, Capital Market serves as an alternative for public investment. People could invest their money according to their preferred returns and risk characteristics of each instrument.

IHSG Diprediksi Mixed di 2.005-2.045 Minggu Ini

Monday, 29 June 2009 09:43:05
StockWatch (Jakarta) - Indeks Harga Saham Gabungan (IHSG) Bursa Efek Indonesia (BEI) diperkirakan mixed di kisaran 2.005-2.045 pada perdagangan minggu ini (29 Juni-3 Juli 2009). Demikian disampaikan oleh Ratna Lim, analis PT Mega Capital Indonesia di Jakarta.

Pasar akan menunggu data inflasi bulan Juni 2009 yang akan diumumkan oleh Badan Pusat Satistik (BPS) pada Rabu (1/7). "Inflasi Juni diperkirakan 0,2% sedangkan BI Rate kemungkinan diturunkan kembali menjadi 6,75%," katanya.

Saham-saham yang diperkirakan Ratna akan ramai ditransaksikan pada minggu ini di antaranya Aneka Tambang (ANTM), Tambang Batubara Bukit Asam (PTBA), Perusahaan Gas Negara (PGAS), dan Indofood Sukses Makmur (INDF).

Ikhsan Binarto, analis PT Optima Securities menyatakan, IHSG akan sideways di kisaran 2.020-2.060. IHSG pada Jumat (26/6) ditutup melemah 3,978 poin (0,195%) menjadi 2.040,193. Saham sektor perbankan dan keuangan mengalami penurunan terbesar masing-masing 2,033% dan 1,656%.

Menurut Ikhsan, private placement saham Bank Central Asia (BBCA) di bawah harga pasar memberikan pengaruh yang negaitf ke sektor perbankan pada minggu lalu. Harga BBCA jatuh Rp275 (7,19%) ke Rp3.550 per unit pada Jumat (26/6). BBCA yang menempati posisi 10 saham top aktif mencatat nilai transaksi Rp241,289 miliar. (yan)

Trikomsel, Acer to Coop in Selling Mini Computers

Monday, 29 June 2009 09:41:43
StockWatch (Jakarta) - PT Trikomsel Oke Tbk (TRIO) has planned to cooperate with international computer manufacturer, Acer, in selling mini computers (netbooks) starting the third quarter of 2009, the company's president Sugiono Wiyono said.

"We see a high interest in mini computers, so we have decided to team up with Acer in marketing the products, in tandem with the company's vision to become a leader in telecomunication and multimedia products and service," he said in a press conference on Friday (26/6) in Jakarta.

He said Indonesia still has a wide market for mini computers so the company is optimistic it will be able to sell a fairly large number of such computers. "We expect the mini computers to contribute approximately 10% of the company's consolidated sales in 2010," he said.

Besides, the company has started to expand the business abroad by founding a company named Trikomsel Private Limited in Singapore which will sell the company's products in foreign countries mainly Southeast Asia. "The company has begun operation since the first quarter of 2009 and the result has been fairly good," he said, and added that Singapore has a more competitive handphone market.

He said that currently the company has 808 OkeShop stores in di 145 cities of Indonesia with a distribution network that consists of 11,000 independent retail sellers. Going forward, the company will open new distribution channels through Oke.Com besides the existing OkeShop, he added. (konrad/bw)

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