"Tax payments from the capital market reached around Rp110 trillion, or 12 percent of the state tax achievement throughout 2016," Indonesian Stock Exchange President Director Tito Sulistio said during a seminar entitled, "Underwriting Network 2017" here on Friday.
He pointed out that the tax payments came from initial public offerings (IPOs) worth Rp89,70 trillion, and about Rp12,99 trillion came from dividends.
He also expressed optimism that the contribution of the Indonesian capital market would improve following an increase in the number of companies that initiate IPOs.
"We seek to increase 30 listed companies every year, especially state-owned enterprises and its subsidiaries. The role of the underwriter is very important in increasing the number of listed companies in the stock market. We want to pursue Singapore and Malaysia," he said.
"To support the improvement of listed companies, BEI continues to develop the capacity and quality of the securities firms that have business activities as underwriters and to give more credence to supporting professionals."
Following the increase in synergy among market participants, he expects that the synergy could support growth in the number of listed companies that enliven the Indonesian capital market industry.
As a result, the industry becomes a benchmark for the progress of the Indonesian economy.
Meanwhile, the contribution of the Indonesian capital market for the welfare of society has developed as the industry has a positive performance.
"Of all the types of investments in the capital market, the wealth of society increases Rp215 trillion from stocks, bonds and other instruments. It shows that consumer spending increases," he said.
Earlier, foreign companies, whose assets and income originated in Indonesia, were urged to float their shares on BEI through an IPO.
There are some 52 foreign investment companies in Indonesia that fall into these categories. If the 52 foreign firms have their shares listed on BEI, the exchange would value their total stake at Rp400 trillion.
Therefore, Tito has delivered the list of the 52 foreign investment companies to Finance Minister Sri Mulyani Indrawati. BEI intends to ask the government to encourage those companies to launch IPOs.
Tito said there are 52 foreign companies conducting business in the country that have the potential of listing Rp400 trillion worth in shares on BEI.
He said that among those 52 companies, three have indicated an interest in launching IPOs at BEI this year. Two of the foreign companies are operating in the mining sector, while the other is in the property sector.
"I have talked to the three foreign companies; two are in the mining sector and one in property. They said they will float their shares through an IPO this year," Tito said, following a meeting with Maritime Affairs Coordinating Minister Luhut Binsar Panjaitan in Jakarta on January 5.
BEI will communicate with the other foreign companies to encourage them to float their shares on the domestic exchange.(*)
Editor: Heru Purwanto
Copyright © ANTARA 2017
