Retailers encouraged to invest in bonds

Retailers encouraged to invest in bonds

The Indonesia Stock Exchange (BEI) has encouraged retail investors to enter into corporate bond (bonds) instruments by reducing denominations to Rp1 million.. ANTARA FOTO/Dhemas Reviyanto/foc/18.

Jakarta  (ANTARA News) - The Indonesia Stock Exchange (BEI) has encouraged retail investors to enter into corporate bond (bonds) instruments by reducing denominations to Rp1 million.

BEI President Director Inarno Djayadi said in Jakarta on Wednesday that the current minimum bond purchase for retail investors was Rp20 million.

"In the future, we will reduce it, but it will be gradual; there must be a transition, so the denomination should not be small in the first place. In terms of electronic, it is quite possible to reduce the denomination to Rp1 million, moreover if it is at Rp20 million," he said.

He hoped that the policy to reduce the bond denomination could encourage more retail investors in the national capital market.

"This is just a denomination, so that retailers can buy bonds worth Rp1 million which was earlier at Rp20 million," he explained.

Currently, he said, the new PT Federal International Finance (FIF) issued retail bonds by offering a denomination of Rp20 million and its multiples.

In the meantime, BEI last Tuesday listed two more companies, PT Pratama Abadi Nusa Industri Tbk (PANI) and PT Arkadia Digital Media Tbk (DIGI).

Corporate Valuation Director of BEI I Gede Nyoman Yetna said the two companies are expected to adopt good corporate governance (GCG) to win market appreciation.

"The adoption of GCG will create and win public confidence," Yetna said.

With the adoption of GCG, the companies would be able to meet the challenges and give greater optimism to their shareholders, he added.

Chief Executive of Arkadia Digital Media Tbk William Martaputra said the listing was a strategic corporate action for his company in expanding the media business.

The company floated and sold to the public 150 million of its paid shares through the initial public offering (IPO) mechanism at a price of Rp200 per share or a total of Rp30 billion.

"The fresh funds would be used for the procurement of infrastructure and hardware and expansion of the platform," Martaputra said.

He said 38 percent of the funds would be for the procurement of hardware, 60 percent for software and the rest for working capital.

President Director of Pratama Abadi Nusa Industri Prilli Soetantyo said his company earned Rp16.2 billion from the share sales and the fund would be used for business expansion.

"The plan is for working capital. We are producers of canned food," Soetantyo said.

Pratama operates in the frozen seafood processing industry and food canning for exports. The company exports its food products to the United States and European countries.

In the initial trade, the shares shot up 70 percent in price to Rp340 each from the IPO price of Rp200; and the shares of PANI surged 69.44 percent to Rp183 per share from the IPO price of Rp108 each.

Reporting by Zubi Marofi
Editing by Andi Abdussalam, Bustanuddin