Bapepam to get greater power for investigation<\/p>\n
JAKARTA (JP): The government will propose a bill on the
\ncapital market to the House of Representatives (DPR) in early
\nOctober which will grant greater investigative and supervisory
\npower to the Capital Market Supervisory Board (Bapepam).<\/p>\n
\"The bill is being finalized by a steering committee involving
\nexecutives from the Ministry of Finance, the Ministry of Justice,
\nBapepam, Bank Indonesia, Cabinet Secretariat and Investment
\nCoordinating Board,\" Bapepam's chairman, Bacelius Ruru, said in a
\nhearing with the House Commission VII here yesterday.<\/p>\n
\"The new legislation will address important issues regarding
\nthe roles of Bapepam and market players and will provide self-
\nregulatory authority to the supporting agencies and increase the
\ntypes of fund management to be allowed,\" he said.<\/p>\n
He said the bill will replace the 1952 one which can no longer
\naccommodate the latest developments in the capital market.<\/p>\n
The new law will empower Bapepam to conduct judicial
\ninvestigations into irregularities and violations in the capital
\nmarket, he said, adding that such tasks have thus far been
\nimplemented by various government agencies, including the
\ndirectorate general for taxation.<\/p>\n
\"The new investigative authority is crucial in enabling
\nBapepam to enforce the capital market rules because any delays in
\ndealing with capital market fraud affect the public's confidence
\nin the market and discourage domestic and international investors
\nfrom doing business on the domestic stock exchanges,\" he
\ncautioned.<\/p>\n
\"Another priority of the bill is to develop the over-the-
\ncounter market, called Bursa paralel,\" he said.<\/p>\n
The over-the-counter market was designed to help both small-
\nscale companies and investors participate in investment
\nactivities under special requirements which are more lenient than
\nthose on the Jakarta and Surabaya stock exchanges.<\/p>\n
The Bursa Paralel also imposes lower capitalization
\nrequirements and lower listing fees.<\/p>\n
\"We hope the bill will help develop the over-the-counter
\nmarket because the nominal price of issued shares will be reduced
\nto between Rp 250 and Rp 500, far below the Rp 1,000 minimum par
\nvalue of the shares listed on the regular markets,\" he added.<\/p>\n
Performance<\/p>\n
Ruru reported that the domestic stock markets showed
\nsignificant growth last year.<\/p>\n
\"The JSX (Jakarta) market, for example, recorded a total
\ntrading volume of 3.84 billion shares valued at Rp 19.08 trillion
\n(US$8.8 billion) last year, up from 1.70 billion shares worth
\nonly Rp 7.95 trillion a year earlier,\" he said.<\/p>\n
Through May 20, trading volume reached 1.93 billion shares
\nworth Rp 10.73 trillion, he added.<\/p>\n
The market capitalization of the JSX soared from Rp 24.8
\ntrillion in 1992 to Rp 69.3 trillion last year.<\/p>\n
During the same period, the Surabaya Stock Exchange (SSE)
\nincreased its trading volume to 266.86 million shares valued at
\nRp 1.15 trillion from 38.74 million shares worth Rp 1.36
\ntrillion, he said.<\/p>\n
He added that up to May 20 the volume of trading in SSE
\nreached 137.72 million shares totaling Rp 556.03 billion. (fhp)<\/p>",
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