DBS Securities might quit Indonesia<\/p>\n
SINGAPORE (Bloomberg): PT DBS Securities Indonesia, an arm of
\nSoutheast Asia's largest banking group, has discussed
\nsurrendering its share trading license in Indonesia, the
\ncountry's market watchdog said.<\/p>\n
"DBS Securities has talked to my staff earlier about its plan
\nto close the office and send its license back to us," said Arys
\nIlyas, director of market institutions and trading at the Capital
\nMarket Supervisory Agency, or Bapepam.<\/p>\n
His comments came a day after DBS Group Holdings Ltd., the
\nregion's largest financial services group by assets, denied it
\nintended to give up its license.<\/p>\n
DBS Securities Indonesia, 75 percent owned by DBS Group, could
\neither sell the license to a new investor or write to return it
\nto the watchdog, Ilyas said. Bapepam hasn't received a letter
\nfrom DBS, he said.<\/p>\n
Earlier, Mieke Resmiati, a DBS Securities Indonesia director,
\nsaid shrinking trading volume and a poor market performance were
\nthe main reasons for a decision to withdraw from Indonesia.<\/p>\n
DBS Group stood by yesterday's denial.<\/p>\n
"We have no plans to exit any business in Indonesia," Chuck
\nNewton, the group's spokesman, said Thursday. "Just because we're
\ntalking, doesn't mean we're going to do it."<\/p>\n
DBS' talks with the market regulator underscore concern about
\nthe future of Indonesia's stock markets, roiled by a plunge in
\nthe rupiah and stock prices in the wake of the crisis and by a
\nrecent bombing at the nation's main exchange.<\/p>\n
Indonesia was hard hit by the 1997-1998 Asian financial
\ncrisis, which led to a recession that devastated the economy and
\ncontributed to ethnic, religious and secessionist violence across
\nthe country. On Sept. 13, a bomb exploded in the Jakarta Stock
\nExchange building, killing more than a dozen people.<\/p>\n
The country's benchmark stock index, the Jakarta Composite
\nIndex, has plunged from a pre-crisis high of over 740 points to
\nabout 424 points Thursday.<\/p>\n
Ilyas said about four foreign stock brokerages have given up
\ntheir licenses since the currency crisis broke in 1997. Deutsche
\nBank Securities returned its license to Bapepam in 1997, he said,
\nbut re-applied earlier this year to resume trading.<\/p>\n
DBS Securities Indonesia has been scaling down its operations
\nin Indonesia since the currency crisis began. It has eight people
\nin the nation, and at end-July was ranked 166 out of 197
\nbrokerages registered with the Jakarta Stock Exchange in terms of
\ntransaction volume.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/dbs-securities-might-quit-indonesia-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}