The Indonesian Stock Exchange (PT Bursa Efek Indonesia, BEI) is inviting local companies in Bali to conduct public offerings because of what it sees as huge potential to obtain long-term sources of funding.

In a positive move to facilitate this initiative, Tito Sulistio, Director of BEI opened new representative offices in Denpasar recently, which he hopes will be a way to better educate and attract more local companies to market stock.

Most people are under the misconception that the stock exchange is only for large limited liability, multi-national conglomerates. It isn't. Companies with an asset value of IDR 5 billion can also apply to make public offerings.

"There are a lot of local companies in Indonesia that have true potential," Tito said. And in Bali this potential is greatest in tourism and service oriented business including property.

There are only three Bali-oriented companies currently on the Indonesian Stock Exchange; PT Bali Towerindo Sentra Tbk, (whose business is leasing telecommunications towers); PT Bukit Uluwatu Villa Tbk, (a hotel and resort development company whose operations are divided into hotels and real estate. They are also the owners of Alila Ubud); and PT Island Concepts Indonesia Tbk (a property development, accommodation and catering services business)

Locally based Coco Mart is in the process of going public. Coco Mart is most well known for being a networked retailer with a chain of convenience stores across Bali but they also have a chain of hotels and bakeries.

According to Tribun there are 26 companies lined up to be listed on IDX in 2018, including property businesses PT Dafam Property Indonesia, PT Kagum Jaya Sakti, PT Wijaya Karya Realty and PT Kota Satu Property. 

"If a company's legalities and administration are clean it only takes between three to six months to be able to floor on the stock," suggested Tito. Going public is an effective way to expose a business and enhance its profile as well as mobilize long-term funds, which can be used to help a company grow and create liquidity.

Sources: Nereca, Warta Ekonomi, Tribun

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