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notable example--Indofoods, a food processing company in the Salim group, managed to circumvent domestic convertible bond regulations and Bapepam's 15 times ceiling on p/e ratios for initial public offerings in Jakarta.
UBS led a $500m equity-linked issue in the Euromarkets for Indofoods through special purpose vehicle Global Mark, which offered three-year bonds exchangeable into shares of the soon-to-be-listed Indofoods.
The pricing on the exchangeable bonds--which were mandatorily convertible six months after a domestic IPO--enabled Indofoods to raise money on a much higher rating than the 15x domestic ceiling would have allowed.
However, at the time of Indosat's flotation, the 15x p/e ceiling was suddenly lifted. It no longer applies to domestic IPOs.
DESPITE doubts over the wisdom of the overseas listings, the competition between international stock exchanges to attract Indonesian companies is intense.
Telkom is considering a listing in Tokyo--to the incredulity of some Jakarta brokers--while London is also making a strong pitch.
However, the presence of three US investment banks among the four global co-ordinators would seem to indicate that New York is the front-runner as the listing venue for Telkom's stock.
State-owned tin mining company Timbang Timbah is expected to list in London and Jakarta in an international privatisation being led by BZW. Other Indonesian companies are believed to be looking at a Singapore listing.
The relative weakness of the domestic stock market will force many more companies to seek the extra funds and liquidity that an overseas listing can provide.
But going abroad without a parallel local listing has disadvantages. Most importantly it cuts companies off from the local investor base and Asian-based research.
Liquidity in Tri Polyta shares has effectively dried up, says one broker, since many brokerage firms no longer cover the stock.
Others point to the NYSE listings of two Chinese power companies last year as a warning to Indonesian corporates caught in the offshore listing craze.
Both Chinese issues have performed badly in the secondary market. Many bankers argue that the companies might have fared better by listing in Hong Kong--a more natural home market for Chinese stocks.
It remains to be seen how the APP and APRIL share prices hold up in the secondary market, and whether the NYSE listing delivers the liquidity that has been promised.
Given the poor performance of the two issues in the primary market, other Indonesian companies may well review their own plans to list abroad.
Many may decide--as has long been argued for Chinese companies in Hong Kong--that a domestic listing is more attractive for international investors as it guarantees that a home market will always be there for the stock.
Instead, companies may decide to follow the example of Bimantara Citra, the holding company controlled by Bambang Trihatmodjo, the son of president Suharto.
Bimantara plans to float around 20% of its stock later this year in a share offering that would be the largest corporate IPO yet seen in Jakarta.
The company plans to raise some $200m through an IPO offered simultaneously to international and domestic investors, but which will not involve any overseas listings.
The stock will be listed in Jakarta. To enable investors to trade on an international exchange, it will also be quoted on London's automated Seaq system.