4
2002).
The
year after
2006,
Indonesian
capital
market
has
been
improving,
however
there
is
another
slight
decline
in
2009
due
to
the
financial
crisis
that
started
in
the
United
States
of
America,
and
it has
regained
the
development
in
2010.
From
table
1.1, the marketing
method
of IPO has developed,
starting
from 2007; Indonesian
IPO
market
has
started
to
use
Book
Building marketing
method.
Full
list
of
company
from 2007 to 2010 and the marketing method chosen can be seen in Appendix A.
In
terms
of the
marketing
method,
fixed
price
marketing
method
has
been
used
dominantly in
Indonesia historically, however, starting
in
2007, some companies
have
already
started
to use
book
building
marketing
method.
In
2007,
3
out
of
22
companies
used
book
building.
In
the
next
year,
2008, almost 71%
of
the companies
that offered
IPOs use the book built method,
and in 2010, almost
100% of companies
use
the
book
built
method.
This
growth
has
shown
the
development
of
the
usage
of
book built method
in Indonesia.
Book
building
in
the
United
States
has
been
predominantly
used
in
the
1990’s. In
Indonesia
this method
has been legally allowed
since the late 2000’s.
BAPEPAM
has
made some changes
in the regulation
of public
offering
in Indonesia;
BAPEPAM
has
allowed
book-building
method
in
Indonesia
since
27th
of
October
2000
(Keputusan
Ketua
Badan
Pengawas
Pasar Modal
Nomor
KEP-41/PM/2000
Tentang
Perubahan
Peraturan
Nomor
IX.A.8
Tentang
Prospektus
Awal
dan
Info
Memo).
This
decision
can
be
seen
in
Appendix
B.
There
has
been
a slow
development
in
book
building
marketing
method
in Indonesia;
however,
it has been gaining
a
sharp increase
in the
popularity
of book
building
marketing
method
since
it has
the
ability
to
reduce
information
asymmetry.
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