JSX gets new chief<\/p>\n
The Jakarta Stock Exchange (JSX) shareholders meeting which
\nelected new boards of directors and commissioners (supervisors)
\non Monday is seen by many analysts as reflecting the stronger
\ninfluence and intervention of the Capital Market Supervisory
\nAgency (Bapepam) in the private company which owns and operates
\nthe JSX.<\/p>\n
The previous management, headed by Hasan Zein Mahmud, was
\nreplaced two years ahead of the expiry of its term not because
\nthat team performed poorly, but because the election was required
\nby a Bapepam ruling. It was, thus, not called for by the JSX
\nshareholders as is normally done in a limited liability company.<\/p>\n
The Bapepam ruling, issued in January along with more than 85
\nother regulations to implement the new capital market law, sets
\nout new requirements for the JSX directors and new procedures for
\ntheir election. Outstanding among the new procedures are the
\nstipulations that candidates for the board of directors and
\ncommissioners have to be approved by Bapepam and that they must
\nbe nominated in a team and not as individuals to ensure a good
\nworking mechanism.<\/p>\n
Obviously it is too early to fairly assess whether the
\nmanagement and supervisory teams elected under the new procedures
\nwill perform better than the previous ones. We feel comfortable,
\nthough, that the management team and supervisory board which were
\nelected are comprised mostly of competent professionals who are
\nwell apprised of the developments at JSX.<\/p>\n
Cyrill Noerhadi, the new president director, has been involved
\ndirectly in the stock market development in his capacity as the
\npresident of the Securities Clearing Depository. Two other
\ndirectors -- Felia Salim and Mas Achmad Daniri -- were members of
\nthe previous management board under Hasan. The other one, Edwin
\nStambul, is a director of a securities company.<\/p>\n
Still more encouraging was the election of Tax Director
\nGeneral Fuad Bawazier as the chief supervisor. Fuad was the
\nexpert in charge of capital market development on the finance
\nminister's staff in 1991 and 1992. As the tax director general
\nsince 1993, he has also directly monitored the developments on
\nthe JSX. The stock exchange needs a supervisor of his official
\ncaliber in dealing with Bapepam.<\/p>\n
Despite the positive results, Bapepam's ruling to require JSX
\nto hold another election for its board of directors within one
\nyear is still raising questions relating to the manner and
\nrationale with which Bapepam may further exercise the stronger
\npower now vested in it by the new capital market law.<\/p>\n
The majority of analysts, most notably the foreign ones, were
\ndeeply impressed with the integrity and technical competence of
\nHasan's management team. And although nobody seems to doubt the
\ncompetence of Cyrill's team, this group has yet to prove its
\nintegrity, which is a very crucial requirement for the management
\nof the JSX, whose capitalization has now reached Rp 177.5
\ntrillion (US$76 billion).<\/p>\n
However, the new management will not likely be able to build
\nup a high degree of integrity and autonomy, if Bapepam does not
\nlimit its intervention to the fundamentals needed to stimulate
\nsound market growth and to protecting the interests of the
\ninvesting public.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-gets-new-chief-1447893297",
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"sponsor": "Okusi Associates",
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