IDX: Fewer IPOs Do Not Signal Declining Investor Confidence

TEMPO.CO, Jakarta - Indonesia Stock Exchange (IDX) assesses that the decrease in the number of companies listed on the stock exchange does not necessarily reflect a decline in investor confidence or prospective issuers in the capital market.

IDX Director of Corporate Assessment, Saidu Solihin, stated that the number of general stock registration statement applications has not decreased. However, some prospective issuers have canceled or postponed their stock listing plans, while others have not received approval from the exchange.

The reasons for this are financial conditions, operational aspects, legal aspects, and business sustainability (going concern). "Nevertheless, the issuance of bonds and/or sukuk as well as other securities instruments on the exchange has increased," said Saidu to Tempo on Monday, July 13, 2026.

Saidu explained that the issuance of bonds, sukuk, and other securities instruments has actually increased. According to him, this condition indicates that companies continue to use the capital market as a source of funding, albeit choosing different instruments according to their respective needs.

He stated that the decision to go public is a strategic step influenced by internal and external factors. From an internal perspective, the company must be prepared in terms of financial performance, organizational structure, and compliance with the requirements set by the Financial Services Authority (OJK) and IDX. As for the external aspect, the IPO decision is influenced by industry conditions, global and domestic economic developments, interest rates, inflation, government policies, and geopolitical dynamics.

Despite the decrease in the number of IPOs, Saidu mentioned that the funds raised have actually increased. A total of 26 companies raised approximately Rp18.1 trillion through IPOs in 2025, higher than the Rp14.3 trillion obtained by 41 companies in 2024. According to him, this condition indicates that listed companies have a larger scale of funding.

Hence, IDX evaluates the success of the capital market not only on the number of companies conducting IPOs but also on the quality of issuers entering the exchange. He emphasized that the most important thing is not only the number of companies listing their shares, but also how these companies have strong fundamentals, good governance, and are capable of sustainable growth after becoming public companies.

To enhance the quality of issuers, IDX has revised Regulation Number I-A concerning the Listing of Shares and Equity-Like Securities Other than Shares in March 2026. The purpose of this regulation is to strengthen the governance of listed companies and enhance investor protection.

In addition to strengthening regulations, IDX continues to provide education and mentoring to potential companies through various programs, such as the Go Public Seminar, coaching clinics, masterclasses, and one-on-one meetings. The exchange also provides a special page for prospective issuers as a source of information regarding the IPO process and preparation, as well as initial discussions with IDX to assess the readiness for stock listing.

Previously, economist and Capital Market Specialist and Founder of LBP Enterprises, Lucky Bayu Purnomo, assessed the sustainability of IPO as a positive indicator of the investment climate qualitatively. The fact that large-scale companies are still willing to list on the exchange amid economic pressures indicates confidence in the capital market.

However, the medium-term quantitative trend shows a slowdown in the expansion of the Indonesian capital market in terms of the number of new issuers. Investor confidence can be more accurately gauged by the quality of the pipeline. The current composition of the pipeline is dominated by large-asset-scale companies, with healthcare being the most prominent sector. This is a positive signal because investors seek cash flow certainty rather than growth stories.

"In principle, this is correct, but it needs to be looked at proportionally. Data shows that as of July 9, 2026, only six companies have realized new IPOs out of the target of 50 companies in IDX's 2026 RKAB," said Lucky to Tempo on Sunday, July 12, 2026.

According to him, this figure continues the trend of a structural slowdown, with the number of IPO issuers decreasing from 79 in 2023 to 41 in 2024 and then to only 26 in 2025.

Lucky sees that global volatility and uncertainty greatly influence companies' decisions to conduct an IPO. According to him, this condition is in line with the theory of market timing in capital structure, where companies tend to postpone IPOs when the cost of equity capital increases due to market volatility, and expedite stock listings when market conditions are more conducive.

He stated that global geopolitical factors are also one of the main considerations in fundraising activities in the capital market this year. Conversely, high interest rates increase the cost of funding through loans, rendering stock issuance a more rational alternative to debt-based financing.

Lucky believes that investors are now much more selective in choosing prospective issuers. Investors tend to favor companies that demonstrate clear revenue growth, productive use of funds, reasonable valuations, and strong governance structures. Not only that, debt instrument issuance still dominates compared to IPOs.

He stated that, as of now, there have been 71 issuances of debt securities and sukuk (EBUS) from 43 companies, with a total fundraising value of Rp76.1 trillion. This far exceeds the funds raised through stock IPOs. This condition indicates that businesses still consider debt instruments as the main source of funding amid equity market turmoil.

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