Bapepam suspends 16 securities companies<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nhas suspended 16 securities houses, mostly members of the Jakarta
\nStock Exchange (JSX), for failing to meet capital requirements,
\nthe chairman of agency said yesterday.<\/p>\n
I Putu Gede Ary Suta said that the 16 securities companies
\nwere being given until January to increase their capital or lose
\ntheir licenses.<\/p>\n
Putu did not name the 16 securities companies but warned that
\nthe increase in their capital was essential for them to continue
\noperating.<\/p>\n
He acknowledged most securities companies operating on the
\nJakarta bourse were financially weak.<\/p>\n
Securities houses are required to have a minimum paid-up
\ncapital of Rp 10.5 billion (US$2.62 million) to provide brokerage
\nservices on the local stock bourses.<\/p>\n
Asked if the suspended companies were allowed to merge to
\nenable them to meet the capital requirement, Putu said it was up
\nto them.<\/p>\n
\"We do not recommend on that but it is up to them. The growing
\ndevelopment of Indonesia's capital market requires at least 200
\nsecurities houses,\" he told an annual meeting of the Association
\nof Indonesian Securities Companies (APEI).<\/p>\n
Of the 215 securities houses registered on the JSX, only 199
\nare deemed to have adequate working capital.<\/p>\n
Putu said many shareholders of the local securities companies
\nwere not serious enough in the stock trading business.<\/p>\n
\"Owners of securities companies (for example) inject only Rp
\n500 million in their securities companies while putting more than
\nRp 2 billion in other businesses,\" he said.<\/p>\n
Speaking on the prospect of securities companies in Indonesia,
\npresident of Makindo, Gunawan Yusuf, said that securities
\ncompanies should be more creative in creating business in the
\ncurrent bearish market.<\/p>\n
\"If the securities houses depend solely on brokerage fees,
\nthey will go bankrupt. But if they are creative in finding new
\nbusiness opportunities they can survive the current bearish
\nmarket,\" he said at the gathering.<\/p>\n
He said new business opportunities included giving investment
\nadvice, investment financing and strategic stake sales to listed
\ncompanies.<\/p>\n
\"I think most listed companies in Indonesia would surely
\nwelcome any advice like that during this sluggish market,\"
\nhe said.<\/p>\n
\"The securities houses have hardly tapped these opportunities
\nduring the market boom. But now is the time for them to take
\nadvantage of these opportunities,\" he said.<\/p>\n
Based on this outlook, he believed that Indonesian securities
\nindustries would still survive even though the global and
\nregional stock markets were bearish. (aly)<\/p>",
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