Indonesia's financial authority processing 13 IPO proposals

Jakarta (ANTARA News) - The Financial Service Authority (OJK) said it is processing proposals of 13 listed companies planning to float more shares at the Indonesian Stock Exchange.

OJKs chief executive of capital market supervision Nurhaida said the 13 companies hope to raise Rp6.83 trillion from the share sales.

Five other companies proposed initial public offering (IPO) worth Rp633.25 billion , Nurhaida told reporters in a year end new conference here on Monday.

"The five companies use their financial reports of June, 2013, to show their financial data required in seeking IPO," she said.

The five companies are the Blue Bird group, known as a big taxi transport operator, planning to offer 531.4 million shares, PT Bank Panin Syariah, sharia bank subsidiary of Panin Bank to float 5 billion shares, PT Bank Ina Perdana, small lender to offer 520 million shares, insurance firm PT Asuransi Mitra Maparya planning to sell 520 million shares and PT Capitol Nusantara Indonesia to sell 208.36 million shares.

In addition, there are three companies proposing right issues hoping to raise Rp3.57 trillion in fresh fund and four listed companies planning to issue bonds valued at Rp2.6 trillion.

Nurhaida also said OJK is studying plan allowing regional administrations to issue bonds, in cooperation with the World Bank and the Directorate General of Fiscal Balance (DJPK) of the Finance Ministry .

She said a number of regional administrations have indicated interest in issuing bonds, but the idea is hampered by the Law on Capital Market which requires prospective issuers to be audited by a public accountant registered at OJK, while other law rules that the financial reports of regional administrations are audited by the Supreme Audit Agency (BPK).

"In 2014 , we plan to look into that matter, either by revising the Capital Market Law or with BPK transferring the authority to public accountants," she said.

OJK is a new body taking over the watchdog duty over capital market from the central bank.