Jakarta bourse to acquire SSE next year<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) plans to
\nacquire the Surabaya Stock Exchange (SSE) early next year to
\ncreate a single Indonesian stock market.<\/p>\n
The JSX's chief commissioner, Marzuki Usman, said yesterday
\nthat the planned acquisition of the SSE will be put to a JSX
\nshareholders' meeting in February next year.<\/p>\n
Marzuki said the main aim of acquiring the SSE is to create an
\neffective and efficient stock market in Indonesia that is able to
\ncompete with other stock exchanges in the world's emerging
\nmarkets.<\/p>\n
He said that listed and would-be-listed companies would
\nbenefit most from the acquisition of the SSE because the listing
\nfee would be cheaper and their stocks could be traded at any
\nstock trading terminal.<\/p>\n
\"After the acquisition, the SSE will become one of the JSX's
\ntrading terminals. I'm sure there will be no problem in trading
\nactivities because the JSX's remote trading facilities are
\nexpected to be ready by next year,\" Marzuki said.<\/p>\n
Currently, stocks traded on the SSE are also traded on the
\nJSX. Approximately 75 percent of the SSE's trading activities are
\ncarried out at its Jakarta terminals.<\/p>\n
The SSE has gained a number of stock trading outlets in
\nJakarta through its acquisition of Indonesia's over-the-counter
\nbourse, the Indonesian parallel market.<\/p>\n
The parallel bourse was officially liquidated yesterday at an
\nextraordinary shareholders' meeting here.<\/p>\n
Small firms<\/p>\n
Tito Sulistio, former president of the parallel bourse, raised
\nquestions yesterday about the fate of small- and medium-sized
\nlisted companies in the event that the SSE is acquired by the
\nJSX.<\/p>\n
Small and medium-sized enterprises had been accommodated by
\nthe parallel bourse before it was acquired by the SSE. After the
\nacquisition, they were automatically listed on the SSE.<\/p>\n
Commenting on the issue, Marzuki said the JSX could provide a
\nspecial board for small and medium-sized enterprises, so that
\nthey would still have accesses to cheap funds through the stock
\nmarket.<\/p>\n
Tito contended that, even supposing that the JSX can
\naccommodate small and medium-sized companies, the planned merger
\nof the Jakarta and Surabaya stock exchanges is premature.<\/p>\n
\"Indonesia is so large in size. Can you guarantee that the
\nplanned remote trading activities will not fail? Why don't we
\nwait until the SSE has consolidated itself and is ready to become
\npart of the JSX?\" Tito said.<\/p>\n
Concurring with Tito, Sjahrir, former chief commissioner of
\nthe liquidated parallel bourse, said the planned acquisition of
\nthe SSE by the JSX should be a natural process, rather than a
\n\"top-down\" process.<\/p>\n
\"I don't agree with doing everything using a top-down
\napproach. The integration of the two exchanges should follow a
\nnatural process. It should be done only when there is already a
\nreal need to have a single market in Indonesia,\" Sjahrir said.
\n(rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jakarta-bourse-to-acquire-sse-next-year-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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