September 6, 2018 / 6:58 AM / in 2 months

Indonesia's stock exchange to launch technology platform, eyes Go-Jek IPO

The logo of the Indonesia Stock Exchange is seen inside the building in Jakarta, Indonesia November 8, 2016.REUTERS/Iqro Rinaldi

JAKARTA (Reuters) - Indonesia’s stock exchange plans to launch a dedicated technology section in 2019 to host initial public offerings (IPO) by startups, in the hope of landing a Go-jek listing.

The Indonesian bourse (IDX) said on Thursday it was working with financial regulator Otoritas Jasa Keuangan (OJK) to amend IPO rules, which currently require companies to be profitable within two years of listing.

“With this new technology board (and change in regulations), startups, including Go-Jek, will be able to list at IDX because they will have up to 6 years after listing to become profitable,” IDX director Nyoman Yetna Setia told reporters.

The chairman of Indonesia’ Creative Economy Agency (BEKRAF), Triawan Munaf, said he hoped the move would allow start-ups to access funds from local investors through share sales.

Go-Jek, Indonesia’s first billion-dollar startup, said in May it was considering an initial public offering in Indonesia, but that details on timing and float size had not been decided.

The firm has evolved from a ride-hailing service to a one-stop app allowing clients in Southeast Asia’s largest economy to make online payments and order everything from food to massages.

Bankers have listed Go-Jek’s potential IPO as a key float to track in Asia’s ride-hailing and mobile payments market, which has caught the attention of global investors.

Indonesian authorities are hoping to make the country a hotspot of regional innovation and have launched a plan to create 1,000 tech startups with a value of $10 billion by 2020.

Go-Jek did not immediately respond to requests for comment.

Reporting by Cindy Silviana; Editing by Stephen Coates

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