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Jakarta. State-owned enterprises are making a big comeback since the 2008 financial crisis. While SOEs have long dominated the economy, they are now also making their mark on the Indonesia Stock Exchange.

For the first time in the history of the bourse, also known as the IDX, the growth in the market capitalization of state companies surpassed that of private companies, marking a significant rebound for the sector.

Between January and November, the value of listed SOEs on the stock market reached Rp 834 trillion ($93.4 billion), an increase of nearly 30 percent.

And with a string of initial public offerings and rights issues by state firms in the pipeline, this number is likely to rise even further.

With the stock market on an extended bull run, share prices of SOEs have also fared well, rising 50 percent on average. Construction firm Adhi Karya has grown a whopping 127 percent, according to a report in Investor Daily.

State-owned banks have also done well on the exchange this year, with the likes of Bank Tabungan Negara rising by 123 percent, Bank Negara Indonesia by 86 percent and Bank Mandiri by 50.6 percent.

Market analysts noted that the entry of more SOEs in the capital markets was good news for both the IDX as well as the country.

Indonesia has more than 140 SOEs in diverse sectors such as banking, agriculture, construction and oil and gas.

“The enthusiasm of the public during the recent IPOs of the SOEs is a positive sign” said Stefanus Susanto from UOB Kay Hian Securities.

“Education and socialization must continue to be introduced to the public so that Indonesia can develop into an investors society instead of being a traditional saving society.”

Mustafa Abubakar, the state enterprises minister, has said he was targeting seven to 10 listings next year. The recent entries of Krakatau Steel and builder Pembangunan Perumahan have been well received and were seen to have strengthened the country’s equities market.

Susanto said investor attitudes had shifted back to buying shares of SOEs following the crisis, when most of state firms’ stock prices crashed.

“The economic rebound has made them change, and because the SOEs have recovered faster and are in better financial health, investors now view them as less risky than in the past.”