The North Sumatra office of the Financial Services Authority (OJK) has announced that three companies based in the province are gearing up for their initial public offerings (IPOs) on the Indonesia Stock Exchange (IDX) in 2025.
These companies, which operate in the healthcare, property and real estate, and infrastructure sectors, are expected to enhance the presence of North Sumatran businesses in the capital market.
Khoirul Muttaqien, Head of OJK North Sumatra office, revealed that there are currently 11 North Sumatran companies listed on the IDX. The upcoming IPOs from these three companies will further increase the number of local entities participating in the stock market, providing more opportunities for investors.
“By next year, there will be at least three potential IPO candidates from North Sumatra,” Khoirul said on Friday, August 9, 2024.
In addition to the upcoming IPOs, Khoirul also highlighted the growing interest of North Sumatran investors in the capital market.
The number of Single Investor Identification (SID) accounts in the region was recorded at 592,876 as of May 2024, marking a 15.47 percent year-on-year increase. This rise reflects a broader trend of increasing participation in the stock market.
However, despite the growth in investor numbers, the total share ownership by North Sumatran investors has slightly decreased.
Khoirul explained that this decline is primarily due to several institutional investors selling off significant portions of their holdings.
On the other hand, retail investors have shown considerable growth, contributing to a more diverse investor base.
The post-pandemic surge in stock market transactions has started to stabilize, with a noticeable decline in trading activity since late 2022.
Nevertheless, by the end of 2023, the total accumulated stock transactions had surpassed pre-pandemic levels, driven by a rising awareness and understanding of stock market investment.
This ongoing trend of increasing financial literacy and participation in the capital market is a positive sign for North Sumatra’s economic future.
The upcoming IPOs and the growing investor base are expected to contribute significantly to the region’s economic development and integration into Indonesia’s broader financial landscape.
