Jakarta. The financial downturn globally, exacerbated by recent elections, has dampened fundraising activities in Indonesia's capital market, with total funds raised amounting to Rp 100 trillion ($6.16 billion) as of July 5. This represents a 35 percent decline compared to the first half of 2023, when fundraising reached Rp 154.13 trillion, according to data from the Indonesia Stock Exchange (IDX).

Jeffrey Hendrik, Director of Development at IDX, cited Ernst and Young's analysis indicating a significant global decrease in initial public offerings (IPOs) in the first half of 2024 compared to the same period in 2023.

"This decline in IPO values and volumes is particularly notable in the Asia-Pacific region, where funds raised from IPOs dropped by 73 percent year-on-year," he told reporters on Wednesday.

Jeffrey attributed this decline to rising interest rates, which have tightened liquidity in major global financial markets like China and Hong Kong. Additionally, geopolitical uncertainties have deterred investors from engaging in new investments.

"Locally, we are also observing a cautious stance post-elections, compounded by presidential transitions in over 60 countries this year," he added.

Despite these challenges, Inarno Djajadi, Executive Head of Capital Market Supervision and Commissioner at the Financial Services Authority (OJK), remains optimistic about achieving the capital market's target of raising Rp 200 trillion.

Regarding this year's public offerings, the majority were debt securities or sukuk issuances totaling Rp 80.13 trillion (66.78 percent of total offerings), followed by restricted public offerings amounting to Rp 36.30 trillion (30.25 percent), and IPOs raising Rp 3.56 trillion (2.97 percent).

"Over the past five years, debt securities or sukuk issuances have consistently led in terms of the number of public offerings, with 84 issuances, followed by 25 IPOs, and 11 rights issuances," he explained.

Since the beginning of the year, 32 companies have already listed on the exchange, out of a 2024 target of around 60.

"Our target is around 60 listings, and with 32 already achieved, we hope to meet our year-end target of 62," said Iman Rachman, CEO of IDX.

Separately, I Gede Nyoman Yetna, Director of Corporate Assessment at IDX, noted significant interest among companies despite the fundraising decline.

Currently, 24 companies are in the pipeline for listing on IDX, spanning various asset and industrial sectors.

"Three companies fall into the small-scale asset category with assets below Rp 50 billion, 15 companies are in the medium-scale asset category with total assets ranging from Rp 50 billion to Rp 250 billion, and six companies are categorized as large-scale assets with assets around Rp 250 billion," Nyoman stated.

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