MINISTRY of Tourism & Creative Economy in collaboration with the Indonesia Stock Exchange (IDX) encourages business actors in the tourism sector and creative economy to enter the capital market through the Initial Public Offering (IPO) scheme. It is intended that the tourism business and creative economy can develop.
According to the Deputy for Industry and Investment, Tourism Ministry, Fadjar Hutomo, the IPO scheme can be a solution for business actors or companies in the tourism & creative economy sector to develop their business.
“Many business actors still need capital for their business development, especially in the tourism sector and the creative economy. The IPO scheme is carried out through the capital market to increase working capital, pay debts, invest, meet acquisition needs, and so on,” Fadjar said.
He added that the Initial Public Offering (IPO) scheme is a process for a company to offer its shares to be purchased by the general public through the Stock Exchange for the first time. The advantage of a business actor or company getting into an IPO is getting access to sources of funding. The public will also assume that the company is an upgraded company.
“By becoming a public company, the value of the company’s equity will increase so that the company has a more optimal capital structure,” Fadjar noted .
Meanwhile, the Head of the West Java IDX Incubator, Achmad Dirgantara, explained that companies that have conducted an IPO are then referred to as Indonesian Stock Exchange Listed Companies, and the company will have benefits for their business growth.
“By conducting an IPO, the value of the company will increase, there is pride from the employees as well. They are proud that the company is transparent, has good governance, and then with the company’s value growing, many domestic or foreign investors will enter,” Achmad stressed.
Furthermore, Achmad explained that the capital market is not only intended for large companies but also as a tool that can be used by all types of conventional companies that want to grow bigger. However, to carry out this IPO scheme is not easy. There are several conditions that must be met, such as the fulfillment of documents regarding general company information, company finances, and company legality.
“Doing an IPO is not that easy. There are various conditions that must be met, for example preparing company documents, there must be transparency. And this must be prepared in advance. All can be seen in full on the Indonesia Stock Exchange website,” said Achmad. [traveltext.id/photo special]