The Indonesia Stock Exchange (IDX) has provided clarity regarding the recent decline in the number of companies listing on the exchange since 2023. IDX President Director Iman Rachman firmly asserted that this trend is not a consequence of exchange policies but rather stems from a noticeable reduction in the number of companies deemed eligible for an Initial Public Offering (IPO).
“We are currently affected by the number of entrants; if we look, the highest number was indeed in 2023,” Iman explained during the Media Gathering Capital Market Journalist Workshop in Bali on Saturday, November 15. “The question isn’t that we are solely focusing on lighthouse companies, but in addition to the target numbers we discussed, we also have internal targets.” He further underscored that the IDX cannot compel companies to go public, as the IPO process relies entirely on the readiness of prospective issuers, alongside the thorough assessment by underwriters and regulatory bodies.
Iman’s presentation revealed a striking contrast in IPO activity over recent years. In 2023, the IDX recorded an unprecedented 79 IPOs, marking it as the highest in history. However, this momentum significantly waned in 2024, with the number of new listings dropping to 41. The trend continues into 2025; as of November 7, only 24 companies have listed their shares, substantially falling short of the year’s target of 45 companies. “If we look today, with a target of 45, we only have 24 this year, and that reflects the current condition of eligible companies,” Iman emphasized, directly linking the figures to the availability of qualified firms.
Beyond merely increasing the sheer volume of listed entities, Iman stressed that the IDX is also strategically focused on attracting large companies, or “lighthouse companies,” to bolster and diversify the market structure. He clarified this strategic pivot, stating, “So, don’t misunderstand that smaller companies are not needed; it’s not like that. However, lighthouse companies are becoming an additional target, alongside our pursuit of overall numbers.” This approach highlights the exchange’s commitment to both quantitative growth and qualitative enhancement of the Indonesian capital market.
Summary
The Indonesia Stock Exchange (IDX) clarified that the recent decline in new company listings since 2023 is not due to its policies. IDX President Director Iman Rachman attributed this trend to a significant reduction in the number of companies deemed eligible for an Initial Public Offering (IPO). He emphasized that the IDX cannot compel companies to go public, as the IPO process depends entirely on the readiness of prospective issuers and regulatory assessments.
In 2023, the IDX recorded a historic 79 IPOs, but this number decreased to 41 in 2024. As of November 7, only 24 companies have listed their shares, falling substantially short of the year’s target of 45 companies. Beyond merely increasing the overall volume of listed entities, the IDX is also strategically focused on attracting large “lighthouse companies” to bolster and diversify the market structure.