The Indonesia Stock Exchange (IDX) is set to launch a special board later this year for publicly listed small and medium enterprises (SMEs) to encourage more SMEs to conduct an initial public offering (IPO) to raise funds for their expansion.   

Assessment director I Gede Nyoman Yetna said in Jakarta on Wednesday that with the opening of the special board, shares of listed SMEs were expected to attract more investors. “We aim to groom publicly listed SMEs so they can grow bigger in the capital market,” he said in Jakarta.

Nyoman said the bourse had issued the rule on July 22, which contained the requirements of the companies eligible to be included on the board. The listing requirements are generally less strict than those imposed on companies in general. They can, for an example, use a simpler accounting standard and pay cheaper listing fees.

Although the bourse had issued the rule on the so-called acceleration board, the head of listed companies service and development Saptono Adi Junarso said the IDX planned to launch the board in the fourth quarter of this year.

In the meantime, he said, the bourse would also compile transaction rules for the stocks on the board and encourage more SMEs to list their shares in the capital market.

The launch of this new board is similar to those in Bursa Malaysia, the Singapore Stock Exchange and the Stock Exchange of Thailand, which have a special listing board for SMEs and startup companies. (hen)