Tuesday, 17 June 2014


The Indonesia Security Exchange [BEI] stat­ed that the capital market industry in Indonesia was ready for the implementation of Asean Community Market in 2015 next. President of BEI Ito Warsito said that in terms of technology, BEI was more ad­vanced than some stockmarkets in Asean, i.e. the technology applied to support transaction at the do­mestic-capital market.

So far BEI had been applying the "Straight Through Processing" [STP] which was an integrated processing mechanism system based on automated transaction process from the beginning till the end. "All transactions at the domestic stockmarket was processed by electronic starting from ordering, trans­action execution, clearing, confirmation until comple­tion of transaction at PT KSEI" he said in Jakarta [3/6].

The process of stock transaction at the stock­market, he said, was run automatically without any manual intervention or repeat input of data. Emitent's wise, Ito Warsito said that of the 9 share sectors at the Indonesia stockmarket, generally all had positive performance.

As regulator of the capital market, BEI was in no condition to help listed companies/emitents to face the MEA 2015. "We could not help them in terms of human resources development for emitents of the respective sector or in capitalizing. Such must be prepared by the emitents themselves, we are only helping them in facilitating venues for transactions," he said.

However, Tito said, BEI had made some anticipative steps long before MEA 2015. This was ap­parent in some regulations to be issued this year "We are preparing authority of BEI which was already ap­proved by OJK, like notification of the latest regula­tion made, CGC roadmap, and we hope that in not too distant future miner companies who still booked loss or not being productive could run IPO," he said.

According to Ito, today there were 3 aspects which indicated development of the stockmarket, i.e. supply side [emitents] demand side [investors] and the system [including infra structure] in facing MEA 2015. Previously the Board of Commissioners of OJK, Stockmarket Controlling Division Nurhaida was expecting national companies to benefit from the stockmarket to step up performance toward MEA 2015.

"By benefiting from the stockmarket compa­nies would be healthier as they could improve capital structure, increase credibility and Good Corporate Governance [CGC]" Nurhaida was quoted as saying.

Implementation of CGC at Indonesia stock­market would be synchronous with global standard so emitents could compete with foreign companies when MEA was in effect in 2015.

OJK was expecting that national companies could benefit from the capital market to step up performance in facing the MEA 2015. "By benefiting from the stockmarket companies would be healthier as they could improve the capital structure, strengthen credibility and enhance Good Coorporate Governance," this was stated by the Board of Commissioner of OJK Stockmarket Controlling Division Nurhaida. CGC application in Indonesia Stockmarket would be synchronized with global standard so local emitents would be ready to compete against foreign companies in MEA 2015. The point was that in AEC companies were demanded to be healthy and now it was right time for local companies to grab opportunities from the stockmarket. With good understanding of the role of capital market, the number of listed companies would increase.

To strengthen competitiveness of companies in facing AEC, BEI and OJK were striving to jack up performance of Indonesia’s stockmarket. The objective was to strengthen competence of Indonesia stockmarket in facing AEC.

Nurhaida explained that the year 2014 was an important year for Indonesia stockmarket, because in 2015 there would be Fee Flow Capital. Indonesia would draw foreign investors if the market could promised good return investment.

“The first homework is to increase the number of our emitents which now numbered 493 emitents. We are left way behind. Even Malaysia had 1,000 emitents, Singapore has more than 760 emitents and Thailand nearly 500 emitents. If our emitents increased in number, the market could be more liquid.” Nurhaida concluded. (SS)

Business News - June 6, 2014

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