New Style for Indonesian Business Clubs : Bali United will list its shares on the Indonesian Stock Exchange (IDX)

The business movement of domestic football clubs began to move into a new phase. Two League 1 2019 clubs, Bali United and Persija, will expand their business side to the realm of this year.

Bali United will become the first Indonesian soccer club to list its shares on the Indonesian Stock Exchange (IDX), if it succeeded with its plan to go public this year, an IDX director has said.
IDX assessment director I Gede Nyoman Yetna Setia said in Jakarta on Monday that the club had not mentioned a date for its initial public offering (IPO), but had confirmed its plans to go public this year.

“Bali United has expressed its wish to list its shares, but it has not submitted the [relevant] documentation,” Nyoman said, and that the club was still in the process of discussing its IPO requirements.

There are many advantages for a company to go public. Some of the advantages are as follows:

(a) Providing Companies Access to Long-Term Funding
(b) Increasing the Company’s Value
(c) Improves the Image of the Company
(d) Encouraging Employee Loyalty
(e) The Ability to Maintain Business Sustainability
(f) Tax Incentives

Besides that there are 3 Challenges of Stock Exchange Entrance :

Director of Investa Saran Mandiri, Hans Kwee stated 3 challenges that must be considered.

First, building public opinion that the national football is an industry with high prospects. The reason is, the opinion that is sticking out later is a matter of Indonesian football which is full of scoring.
This means that if the club develops well, the competition develops well, with professionals, club prices will increase a lot. So that the value of investor profits will increase

Second, the issue of professionalism. The professionalism of the players when competing is the focus, for example the rival about the decision of the referee until there is a fight.

Third, it is a matter of maintaining the club’s reputation. Hans gave an example of a club case that was sanctioned because of the actions of his supporters. He viewed, when the club entered the stock exchange later, supporters must be more able to maintain an attitude with no brawl.
Because, when there is an act done by supporters and the club’s name becomes ugly, it affects the price of the club’s related shares.

With that, it is hoped that Indonesian football clubs can overcome the limitations and shortcomings of football clubs so far. Because seeing the existing problems is very likely to be anticipated so that a football club with high professionalism will emerge and produce more quality football as well as a promising football business climate in Indonesia.

References :
[1] https://bolalob.com/read/107473/gaya-baru-bisnis-klub-indonesia-bali-united-akan-masuk-ke-bei-tahun-ini
[2] https://www.thejakartapost.com/news/2019/02/12/idx-confirms-bali-united-soccer-clubs-public-offering-plan.html
[3] https://www.finansialku.com/persija-bali-united-ipo
[4] https://gopublic.idx.co.id/2016/06/22/manfaat-go-public

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