Rising Star Exchange: An Alternative Capital Market for SME in Indonesia

Masripah ., Meizaroh ., Alvita Yuniar, Pramuditya Ardhana

Abstract


The purpose of this paper is to formulate an ideal stock exchange to help Small-Medium Entity (SMEs) in getting the capital they need. SMEs face some difficulties to grow its business. Access to the capital market is one of their main obstacles. This research uses a descriptive approach. This research discusses the problem by using literature study and secondary data as a source of information which is then analysed to be interpreted. This paper analyses both equity crowdfunding and Indonesian Stock Exchange Acceleration Board as the currently available equity market for SMEs. The key takeaways from both capital markets then being used to develop a new capital market called Rising Star Exchange (RiSE). The results of this paper implicate that by having this stock exchange, SMEs will have better access to funding while the investors also get the level of protection they need. The paper contributes to the social, economic and business sciences. The results of this paper could be used by the government to formulate a regulatory environment which could support the growth of SMEs, by the SMEs to find another alternative source of fund, and by the investors to allocate their fund in SMEs investment.

 


Keywords


SMEs; equity crowdfunding; stock exchange

Full Text:

PDF

References


Agrawal, A., Catalini, C., & Goldfarb, A. (2016). Are syndicates the killer app of equity crowdfunding? California Management Review, 58 (2), 111-124.

Agrawal, A.K., Catalini, C., & Goldfarb, A. (2013). Some simple economics of crowdfunding. National Bureau of Economic Research, 14 (1), 63-97.

AIM. (n.d.). Alternative investment market. Retrieved September 7, 2020, from https://www.londonstockexchange.com/raise-finance/equity/aim

Bursa Malaysia. (2019). Sustainability report 2019. Retrieved September 7, 2020, from https://www.bursamalaysia.com/sites/5d809dcf39fba22790cad230/assets/5e5c68045b711a4c6c4b9c9e/_FINAL__Bursa_SR19_Mid_Res_03012020.pdf

Catalist-Singapore Exchange (SGX). (n.d.). The ideal platform for fast-growing enterprises seeking a primary listing. Retrieved September 7, 2020, from https://www.sgx.com/securities/catalist

Chinext. (n.d.). Milestones. Retrieved September 7, 2020, from http://www.szse.cn/English/about/milestones/index.html

Ertimur, Y., Ferri, F., & Muslu, V. (2011). Shareholder activism and CEO pay. Review of Financial Studies, 24 (2), 535-592.

Estrin, S., Gozman, D., & Khavul, S. (2018). The evolution and adoption of equity crowdfunding: Entrepreneur and investor entry into a new market. Small Business Economics, 51 (1), doi: 10.1007/s11187-018-0009-5.

Google-A.T. Kearney Study. (2017, September). Indonesia Venture Capital Outlook 2017. Retrieved September 8, 2020, from https://www.thinkwithgoogle.com/_qs/documents/ 4881/TWG-APAC-Indonesia-VC-Outlook-2017-Report.pdf

Harwood, A. & Konidaris, T. (2015). SME exchanges in emerging market economies: A stocktaking of development practices. World Bank Group: Policy Research Working Papers, doi.org/10.1596/1813-9450-7160.

Indonesian Stock Exchange. (2019). IDX Factbook 2019. Retrieved September 7, 2020 from https://www.idx.co.id/media/7703/factbook-2019-indesign-halaman-2.pdf

Japan Exchange Group. (2020). Mothers Global Information. Retrieved September 7, 2020, from https://www.jpx.co.jp/english/equities/products/foreign/mothers/index.html

Kuppuswamy, V., & Bayus, B.L. (2013). Crowdfunding creative ideas: The dynamics of project backers in Kickstarter. UNC Kenan-Flagler Research Paper, no 2013-15, available at SSRN:http://ssrn.com/abstract=2234765

Ministry of Cooperatives and Small and Medium Enterprises. (n.d.). Perkembangan data usaha mikro, kecil, menengah (UMKM) dan usaha besar (UB) Tahun 2012 - 2017. Retrieved September 5, 2020, from http://www.depkop.go.id /data-umkm

Ministry of Cooperatives and Small and Medium Enterprises. (n.d). Perkembangan data usaha mikro, kecil, menengah (UMKM) dan usaha besar (UB) Tahun 2010 – 2015. Retrieved on July 10, 2020, from http://www.depkop.go.id/uploads/laporan/ 1580279084_Perkembangan%20Data%20UMKM%20dan%20Usaha%20Besar%20(UB)%20Tahun%202010-2015.pdf

Ministry of Cooperatives and Small and Medium Enterprises. (n.d). Perkembangan data usaha mikro, kecil, menengah (UMKM) dan usaha besar (UB) Tahun 2017 – 2018. Retrieved July 10, 2020, from http://www.depkop.go.id/uploads/laporan/1580223129_ PERKEMBANGAN%20DATA%20USAHA%20MIKRO,%20KECIL,%20MENENGAH%20(UMKM)%20DAN%20USAHA%20BESAR%20(UB)%20TAHUN%202017%20-%202018.pdf

Narbuko, C., & Achmadi, A. (2009). Metodologi penelitian. Jakarta: Bumi Aksara.

Nasarudin, M.I., Surya, I., Yustiavandana, I., Nefi, A., & Adiwarman. (2014). Aspek hukum pasar modal Indonesia. Jakarta: Kencana.

Peraturan Otoritas Jasa Keuangan Republik Indonesia Nomor 37/POJK.04/2018. Layanan urun dana melalui penawaran saham berbasi informasi (Equity Crowdfunding). Lembaran Negara Republik Indonesia Tahun 2018 Nomor 37. Jakarta.

Santara. (n.d.). Urun Dana Investasi Bisnis UKM. Retrieved September 12, 2020, from https://santara.co.id/

Schwienbacher, A. (2019). Equity crowdfunding: Anything to celebrate?. Venture Capital, 21 (1), 65-74, doi: 10.1080/13691066.2018.1559010.

Sigar, K. (2012). Fret no more: Inapplicability of crowdfunding concerns in the internet age and the JOBS Acts safeguards. Administrative Law Review, 64 (2), 473-506.

Terry, H.P., Schwartz, D., & Sun, T. (2015). The future of finance. Goldman Sachs Global Investment Research, p. 3, 8-18.

The Jakarta Post. (2019, December 18). Government wants more SMEs to go public. Retrieved September 9, 2020 from https://www.thejakartapost.com/news /2019/12/18/government-wants-more-smes-to-go-public.html

The Stock Exchange of Hong Kong Limited. (n.d.). Growth enterprise market. Retrieved September 7, 2020, from https://www.hkgem.com/root/e_default.asp

The World Federation of Exchanges. (2018, October 2). An overview of WFE SME markets. Retrieved September 10, 2020, from https://www.world-exchanges.org/news/articles/world-federation-exchanges-publishes-report-global-sme-markets

Tripalupi, R. I. (2019). Equity crowdfunding Syari’ah dan potensinya sebagai instrument keuangan syari’ah di Indonesia. ADLIYA: Jurnal Hukum dan Kemanusiaan, 13 (2), 229-246.

Undang-Undang Republik Indonesia Nomor 20 Tahun 2008. Usaha mikro, kecil, dan menengah. Lembaran Negara Republik Indonesia Tahun 2008 Nomor 20. Jakarta.

Undang-Undang Republik Indonesia Nomor 8 Tahun 1995. Pasar modal. Lembaran Negara Republik Indonesia Tahun 1995 Nomor 8. Jakarta.

Victoria, A. O. (2020, February 05). Rata-rata pendapatan penduduk Indonesia setahun Rp 59 Juta. Retrieved September 10, 2020, from https://katadata.co.id/agustiyanti/ finansial/5e9a495de4ee7/rata-rata-pendapatan-penduduk-indonesia-setahun-rp-59-juta

Wilson, K.E., & Silva, F. (2013). Policies for seed and early stage finance: Findings from the 2012 OECD financing questionnaire. OECD Science, technology and industry policy papers, no. 9, doi.org/10.1787/5k3xqsf00j33-en.

Wilson, K.E., & Testoni, M. (2014, August 28). Improving the role of equity crowdfunding in Europe's capital markets. Bruegel Policy Contribution, 2014 (09), 1-14.




DOI: http://dx.doi.org/10.33021/jaaf.v5i1.1328

Refbacks

  • There are currently no refbacks.


Mailing Address

Jl. Ki Hajar Dewantara, Kota Jababeka, Cikarang Baru, Bekasi 17550 - Indonesia

Mail Address

jaaf@president.ac.id

 

ISSN 2580-1791 (Print)

ISSN 2615-8051 (Online)

View My Stats

flag

 

---------------------------------------------------------------------------------------------------------------------------------------------------

JAAF (Journal of Applied Accounting and Finance) is indexed in: