When someone is going to make a long-term investment in stocks that will be kept, the investor must know information about the company to be invested. This information can be obtained at an event held by a public company called the Public Expose. The following is the meaning of Public Expose.
Definition of Public Expose
Public Expose, is a mandatory activity that must be carried out by a public company. The purpose of public expose is to provide transparent information to company stakeholders, such as investors, employees, customers, and the general public. Public Expose is carried out by the company at least once a year. These provisions are regulated in IDX Regulation Number I-E Concerning Obligations for Submitting Information with a minimum requirement of once a year.
As defined by the IDX, public disclosure to the public is about the issuer’s performance with the aim that information about the company’s performance is spread evenly. This is because the Public Expose is part of the regulations on transparency or disclosure of companies whose shares are already listed on the stock exchange. Through Public Expose, issuers also have the opportunity to get new investors.
Public Expose Delivery
There is some information that is usually presented in a Public Expose by companies, including:
- Operational Activities and Company Circumstances
The company will present a company biography and introduction in the Public Expose. Starting from the history of the company since its inception, to the state of the company at the time of presentation.
Companies will share information about their revenues, profits, cash flow, and financial position. It includes annual financial reports, information on revenue growth, profit margins, and other financial ratios. The aim is to provide a clear understanding of the condition of the company to stakeholders and the general public.
- Projection and Business Strategy
Companies may present their short and long-term business projections, including growth plans, strategic initiatives, and future performance targets. It provides stakeholders with information about the direction of the company and future plans. Through Public Expose, the issuer will convey the issuer’s performance and plans going forward. The issuer’s CEO and top internal executives will attend the Public Expose. Participants will have the opportunity to listen to their presentations and ask questions as well as hear their answers directly.
- Innovation and New Products
Companies may share information about new products or services to be launched or under development. This could include related features, benefits, launch date, and marketing strategy.
- Corporate Social Responsibility
Companies must describe their social responsibility efforts, including sustainability programs, philanthropic activities, environmental initiatives, and other social endeavors. It aims to demonstrate the company’s commitment to sustainability and positive impact on society.
- Awards and Achievements
Companies may share information about awards they have received, significant business accomplishments, or other industry recognition. This helps strengthen the company’s image and builds trust among stakeholders.
- Important Events
In the event of a significant event such as a change in leadership, acquisition or merger, organizational restructuring, or a significant legal issue, the company will disclose it to the public. The goal is to provide clarification, manage perceptions, and provide accurate information about the situation.
Companies must ensure that the information they disclose in the Public Expose is accurate, honest, and relevant to stakeholders. Good transparency in communicating this information helps build strong relationships with stakeholders and maintains trust in the company.
Purpose of Public Exposes
It’s not that a company is doing public exposure without cause. Some of the objectives of the Public Expose for companies, namely:
- Transparency
Public Expose allows companies to maintain transparency with company stakeholders, such as investors, employees, customers, and the general public. The company creates trust, builds and maintains good relationships with these stakeholders by providing clear and accurate information.
- Stakeholder Engagement
The Public Expose provides an opportunity for stakeholders to get involved and have a deeper understanding of the company’s activities and developments. By holding a Public Expose, companies help create a sense of ownership, increase engagement, and strengthen relationships with stakeholders.
- Build a Corporate Image
Public Expose helps companies build a positive image in the eyes of stakeholders. By conveying information openly and honestly, the company can strengthen its reputation as a trusted and responsible company.
- Gather Support and Investment
The Public Expose also aims to attract investors and gain support from other stakeholders. This is because the scope of public exposure is not limited only to stakeholders in the company, but also the general public who can become company investors. Through good exposure, companies can demonstrate growth potential, competitive advantage, and attractive business plans for potential investors and potential partners.
- Build Customer Trust
By presenting information about innovations, new products, or corporate social responsibility, Public Exposes help companies build customer trust. Customers will feel more confident and confident in choosing products or services from companies that are transparent and responsible.
- Regulatory Compliance
Companies also need to ensure that they comply with regulatory and legal requirements regarding public disclosure of information. The Public Expose helps companies fulfill their obligations in this regard and ensures that the information disclosed complies with the applicable rules in the I-E regulations regarding the obligation to submit information.
Overall, the main objectives of the Public Expose are to build trust, maintain good relations with stakeholders, and ensure transparency in corporate communications.
Procedures for Conducting a Public Expose
In accordance with the Decree of the Board of Directors of PT Bursa Efek Indonesia (IDX), concerning procedures for holding an annual Public Expose, companies are required to submit information disclosure regarding plans to hold a Public Expose no later than 10 days prior to holding a Public Expose. The information must also contain the date and time of the event, venue, and directors who will attend the Public Expose.
The venue for the Public Expose is also held at the Exchange office or at another place, at a time and place that allows the presence of investors, analysts, fund managers, representatives of Securities Exchange Members, and the mass media. Currently, the Public Expose can be done in a hybrid manner, online by watching it from live streaming recordings and offline or by coming directly to the location specified by the company via invitation.
Companies are also required to submit to the Exchange a report on the implementation of the Public Expose no later than 3 days after the implementation of the Public Expose. The submission was followed by a summary of questions from participants in the Public Expose and answers from the Listed Companies as well as a summary of the results of the Public Expose. The company must also attach a copy of the attendance list.
If the Public Expose is an incidental Public Expose, then the company still has to carry out procedures according to the annual Public Expose, but the deadline for submission and the scope of the material can be less than 10 days according to a written exchange request or other means determined by the exchange.
That is the meaning of a Public Expose, a public exposure that must be carried out by a Public Company. For information, one of Asiavesta’s investees with stock code RELF, conducted a Public Expose which was held on May 31, 2023 at Amana Venue, Jagakarsa. Hopefully this article can add even more knowledge and help you get to know what a Public Expose is deeper!
(Abstracted by: Lavy El Harisy)