35 new companies predicted to launch IPO in 2016

Jakarta (ANTARA News) - Indonesia Stock Exchange PT Bursa Efek Indonesia (BEI) has set a target that 35 new companies would launch initial public offering (IPO) in 2016 more than this years target of 22 companies.

"The target is based on expectation that the economy would recover in 2016. More companies would seek additional capital from the stock market," President Director of the Indonesian Stock Exchange (BEI) Tito Sulistio said after an extraordinary shareholders meeting here on Wednesday.

He said under the working plan and annual budget of BEI for 2016 , the countrys economic growth is predicted to reach 5.3 percent, and the targets for the benchmark interest rate of Bank Indonesia (BI rate) is set at 7.5 percent , inflation is around 4 percent and the rupiah value is set at 13,900 per US dollar.

"Implementations of the recently issued governments economic policy packages would be effective in 2016 to serve as a catalyst for economic revival that would bring about greater confidence of investors in the domestic market," Tito said.

In addition, 51 companies are expected to issue bonds and listed bonds are predicted to reach Rp49.96 trillion or around Rp960 billion each on the average -- 4 percent higher than the target set for 2015.

"The bond yield in 2016 is expected to be stable in 2016 with the governments intervention to maintain stability in the state securities that would contribute to stability in cost of bond fund. The stability in cost of bond fund would encourage listed companies to issue more bond for debt refinancing," Tito said.

Until Oct 27, 2015, there were 41 bonds issued totaling in value at Rp53.99 trillion with 13 more bonds worth Rp7.7 trillion in the process of issuance.

Tito Sulistio said BEI would continue to strengthen the role of its members that the market activity would run normally.(*)