Jakarta. For many business owners, the fear of losing control remains a key reason for postponing an Initial Public Offering (IPO). Going public is often seen as a defining moment—one that could dilute founders’ influence and shift decision-making power to the market.

That concern is understandable. Yet in practice, an IPO does not automatically strip founders of control. Corporate control is not determined by whether a company is listed, but by how ownership structures and voting rights are designed from the outset.

Control Is Defined by Structure, Not Public Status

One of the most common misconceptions is that once a company goes public, ownership effectively transfers to the public. In reality, data from Indonesian IPOs over the past 25 years show that, on average, only around 25% of shares are offered to public investors. The remaining approximately 75% typically stays with existing shareholders, including founders or controlling families.

With this ownership composition, founders often retain majority voting rights at General Meetings of Shareholders, allowing them to continue setting the company’s strategic direction.

Indonesia’s capital market regulator, Otoritas Jasa Keuangan, defines a controlling shareholder as a party holding more than 50% of shares—or any party with the ability to determine strategic corporate decisions. This underscores a crucial point: control depends on ownership and voting power, not listing status.

Many large family-owned businesses in Indonesia have successfully listed on the Bursa Efek Indonesia while remaining firmly under the control of their founders. This is made possible through deliberate planning of offering size and post-IPO ownership composition.

IPO and Governance: Transparency Without Strategic Loss

Another frequent concern is that post-IPO disclosure requirements and stricter oversight limit management’s flexibility. Public companies are indeed required to adopt higher governance standards, including appointing independent commissioners, establishing audit committees, and complying with information disclosure obligations.

However, these mechanisms are not designed to undermine management authority. Instead, they aim to strengthen accountability, protect shareholders, and ensure long-term sustainability.

In fact, stronger governance often leads to better decision-making. Processes become more structured, risks are managed more effectively, and access to funding expands. Companies evolve into more professional institutions—better equipped to grow and endure across generations.

The key lies in preparation. Ownership structure, the proportion of shares offered, board composition, and internal readiness must all be carefully planned before the IPO. When done right, an IPO becomes a growth instrument—not a loss of control—enhancing reputation, credibility, and access to long-term capital.

Indonesia’s Capital Market Momentum: A Window of Opportunity

Indonesia’s capital market has expanded rapidly in recent years. The number of capital market investors has surpassed 21 million Single Investor Identifications (SID), while listed companies on the exchange have exceeded 900. Indonesia has also consistently ranked among the most active IPO markets in ASEAN.

This growth signals a market in expansion: a broader investor base, rising liquidity, and increasing public awareness of investment opportunities. For companies, this momentum presents a timely opportunity to elevate their business and enter a more structured growth phase.

IDX Incubator: Structured IPO Preparation

Many companies have strong fundamentals but are not yet structurally ready for an IPO. The challenge often lies not in business performance, but in governance readiness, documentation, capital structure, and regulatory understanding.

To address this gap, the Indonesia Stock Exchange offers the IDX Incubator, a free mentoring program designed to help companies prepare for IPOs in a structured and systematic way. The program provides comprehensive education for businesses planning to go public within the next few years.

Listyorini Dian Pratiwi, Head of the Listed Company Development Division at the Indonesia Stock Exchange, emphasized that an IPO is not an instant transaction, but a transformation process.

“An IPO is not merely a corporate action to raise funds. It is a comprehensive transformation into a more transparent, professional, and sustainable institution. Through IDX Incubator, we aim to help companies build that foundation gradually and systematically—so they are truly ready when the time comes.”

She added that one of the program’s core objectives is to show that control and professionalism can coexist.“Many entrepreneurs worry about losing control after an IPO. In reality, with proper ownership planning and sound governance, companies can maintain strategic direction while strengthening credibility and competitiveness as a public company.”

Why Start Now?

IPO preparation ideally begins two to three years in advance. The earlier a company organizes its governance and ownership structure, the better the outcome.

Registration for IDX Incubator is open until March 8, 2026, offering companies an opportunity to strengthen governance, refine ownership structures, and enhance internal readiness ahead of a future IPO.

More information on eligibility and registration is available at https://incubator.idx.co.id/. For inquiries, collaboration proposals, or IPO-related discussions, companies may contact [email protected].