The Indonesia Stock Exchange (IDX) has proposed to set up an agreement on dual listings with the Hong Kong stock exchange, in a bid to provide its startups and state-owned enterprises a venue to tap Chinese capital, Bloomberg reported on Friday.

IDX has proposed to bring its local startups to also list on the bourse operated by Hong Kong Exchanges and Clearing Ltd (HKEX), said IDX business development director Jeffrey Hendrik in an interview with Bloomberg. Initial targets include technology startups, and possibly the country’s state-owned enterprises, he was quoted as saying.

Encouraging local firms to list elsewhere does not mean a loss for the exchange since it expects foreign-listed companies to grow and benefit the domestic economy with local hiring and spending, according to Hendrik.

“What is good for our economy is, of course, good for our exchange,” he said.

President Joko Widodo’s national strategy includes helping domestic firms become more active globally, according to IDX president commissioner John A Prasetio. The national strategy is unlikely to change even after the upcoming presidential election next year, he said. Indonesian companies should be encouraged to be international actors, said Prasetio. “If you can make it in Hong Kong, you can make it anywhere.”

Indonesia is third in initial public offering (IPO) fundraising so far this year in Asia-Pacific, including the world’s third-largest debut of PT Pertamina Geothermal Energy on Friday, according to the newswire. Last year saw blockbuster IPOs such as GoTo and Blibli.

“At HKEX, we maintain an active dialog with fellow exchange organizations around the world, sharing best practices and insight for the benefit of our markets as a whole,” a spokesperson said in an emailed statement, confirming that the bourse “recently” met with IDX as part of this outreach program. “We look forward to continuing to promote Hong Kong as both an international listing and investor market, as we build the Marketplace of the Future.”

Besides, IDX also proposed to list flagship index exchange-traded funds on HKEX to cover the Indonesian market, Hendrik said. A delegation from IDX visited HKEX on Thursday with two start-ups — grab-and-go coffee shop Kopi Kenangan and online car seller Carsome, and the interaction was constructive, he said.

While IDX is “good friends” with the Singapore Exchange, the capital market depth and liquidity in Hong Kong make it more attractive for dual listings, Hendrik added.

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