SCENARIO PLANNING FOR IDX IN FACING CHALLENGE FOR FUTURE GROWTH OF STOCK LISTED COMPANIES

• Main Author: Lubis, Sartika
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/55600
• Institution: Institut Teknologi Bandung

The growth in the number of new stocks listed companies in IDX in the last 5 years has significant growth. Although currently the growth is still very high, there are uncertainties in the future of growth in the number of new stocks listed companies on IDX. There are some issues that IDX face and might affect the growth of stock listed companies in the next 5 years ahead, which are: Covid 19 pandemic condition has caused a decline in Indonesia's economic conditions and an impact on the performance of companies in Indonesia which will be a challenge for the prospective companies and IDX, there are other options for company to raising funds especially for SMEs companies or start-ups companies, which through equity crowdfunding, and investors have many different investment options such as equity crowdfunding, crypto currency, gold, time deposit, etc. The purpose of this research is to provide the comprehensive scenario planning to help IDX prepare for the future with high uncertainties that might impact the growth of new stock listed companies in IDX. This research will be used the qualitative research methodology which use the primary data and secondary data to find the driving forces that might affect the growth of new stock listed companies in IDX. The method used for collecting the primary data is doing the interview with the experts. The experts are coming from internal IDX and stakeholders of IDX. The secondary data was obtained from IDX’s internal data, books, journals, website, and media scanning. The key focal issue that has been identified is “How is the growth of new stock listed companies in 5 years considering different type of futures?”. Based on the analysis on interview result, driving forces that have the highest level of uncertainty and the highest level of impact to the key focal issue are Domestic Economic Climate and Government Policy and Regulation. Based on the critical uncertainties that have been identified before, there are 4 plausible scenarios that have been created namely The Midnight Zone, The Sunlight Zone, The Twilight Zone, and The Abyss Zone. In The Midnight Zone scenario, the opportunity is open for IDX to increase new stock listed companies due to the supportive regulation from Government. However, there is a decline in domestic economic conditions where the economic growth is low, and the inflation rate is increasing. In The Sunlight Zone scenario which is the most pleasant scenario, there is high economic growth and normal inflation rate. Many companies actively do the expansion and investment to fulfill high demand from customers. On the other hand, government regulation is also very supportive and makes it easier for companies to go public and listed their shares in IDX. In The Twilight Zone scenario, economic condition has the positive growth which allows companies to have the opportunity to continue grow by expanding and investing. However, there is a very challenging situation to work with the government due to unsupportive government regulations. In The Abyss Zone scenario, which is the most unpleasant scenario, the economic growth is very low to negative and high inflation rate. Many companies postpone doing the expansion and investment. Moreover, there is a very challenging situation to work with the government due to unsupportive government regulations.