IDX Launches New Economy Board to Accommodate Volatile Tech Stocks


The Government of Indonesia and the Indonesia Stock Exchange (“IDX”) have been longing for the public exposure of many of the country’s top professional players. However, investor confidence has been dampened by a lack of liquidity among tech companies, while the overall performance of the IDX has been dragged down in recent months due to volatility in the tech sector.

In an attempt to deal with such volatility, IDX has now created a New Economy Board (“NEB”), which is described in IDX Board of Directors’ Resolution No. Kep-00083/BEI/11-2022 (“IDX Rule IY“)[1] and IDX Circular No. SE-00011/BEI/11-2022 (“IDX SE-00011“)[2] (together, “Laws”, all submitted on 30 November 2022). Although the Rules do not specifically say, it seems that the IDX will instruct the transfer of goods from the Main Board to the NEB. Therefore, it cannot be seen as voluntary work.

According to the loan, the NEB will also increase transparency and public confidence in the field of technology companies as listed companies must comply with certain requirements, beyond those that apply to other listed companies. For example, ticker codes for NEB companies should be marked with a “K” or “I”, with the “K” alerting prospective investors that the company has issued multiple voting shares (ie, shares that carry more than one vote per share. ), while “I” means that the company has not issued such shares. These notes also help warn investors of the problems that are often associated with emerging stocks, such as that some stocks may not yet generate profits.

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So far, the NEB has named only three companies: tech giants PT GoTo Gojek Tokopedia Tbk (GOTO), PT Tbk (BUKA), and PT Global Digital Niaga Tbk (BELI) (owner of

Key Features of IDX Rule IY are IDX SE-00011

The new rules are simple. They claim that IDX has established NEB (Papan Ekonomi Baru), which is available only to providers who: (i) have a significant growth rate; (ii) the use of technology to create new products or services that increase productivity and economic growth, and have social benefits; and (iii) participates in transactions listed by IDX (“NEB values“).

IDX SE-00011 describes in detail the steps that must be completed by technology companies to be listed on the NEB, as follows:

1. “Big money growth”

The company must have an annual return of at least 30% based on its net income over the past three years.

2. “Use technology to create new products or services that increase productivity and economic growth, and have benefits”

This is based on the following principles:

A. Commercial offerings

Business transactions offered[3] must be the largest contributor to the company over the past three years.

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B. Doing business

To assess the performance of the business, the prospect may choose one of the following, depending on the performance of the business:

I. The growth of the number of people who use software, for software-as-a-service (SaaS) companies, which are measured by active users to perform a single task in digital marketing. This activity for users depends on the type of company and the products offered within a certain period, depending on the business sector, including payments, storing or transmitting information, and online games.

II. An analysis of the company’s business and its size, using the following parameters:

a. Parameters that indicate the value of the transaction, including:

1. Gross Merchandise Value (GMV), the total value of goods sold at a specified time through a customer-to-customer (C2C) exchange. GMV is calculated before deducting any income or other expenses.

2. High Price, performance metrics that include: (i) the total value of target services; (ii) the total cost of goods and services listed on the company’s e-commerce market; and/or (iii) the total cost of payments processed through a financial technology (fintech) platform, excluding the cost of transactions between companies excluded from the merger.

3. Total Processing Value (TPV), the rupiah amount of paid transactions managed by the company’s platform, including physical and virtual products. TPV is calculated as the sum of the cost of goods sold and additional costs such as fees, supplies, and services, excluding non-paid GMV.

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b. Parameters that show the way to profit, which can be identified by factors that include the company’s business plan and/or financial considerations related to the future plans of the prospective provider; or

c. Other fields related to prospective business providers.


III. Public welfare, as assessed by:

a. Contribution to gross domestic product (GDP);

b. The number of partners (delivery drivers, for example) or the number of services produced by prospective suppliers; and/or

c. Other changes, as determined by IDX.

Under IDX Rule IY, in order to be listed on the NEB, a technology company must have gone through the initial public offering process and met the requirements on the list provided to IDX’s Main Board. In addition, it must meet NEB Standards.

ABNR review

The NEB provides effective ways for the bourse to reduce the volatility of technology prices in companies (as has happened recently) by removing such stocks from the Main Board, while providing a vehicle for the stock to present itself as. such as the stock market. In addition, the creation of the NEB should facilitate better transparency for investors in relation to the financial performance and the shares of the companies listed there.


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