Local exchanges sign MOU with ASX<\/p>\n
JAKARTA (JP): Indonesia's capital market should expand
\ncooperation with developed markets in the Asia-Pacific,
\nIndonesian Capital Market Supervisory Board (Bapepam) chairman I
\nPutu Gede Ary Suta said yesterday.<\/p>\n
Putu said information exchanges would help stop manipulative
\ninvestors and brokers entering the Indonesian capital market.<\/p>\n
He was speaking after signing memorandums of understanding
\nbetween the Australian Stock Exchange (ASX) and the Jakarta and
\nSurabaya Stock Exchanges, and between Indonesia's Bapepam and the
\nAustralian Securities Commission (ASC).<\/p>\n
Putu said the Indonesian capital market was still in its
\ninfancy and the possibility of market fraud was high. \"We do not
\nknow if investors are qualified and of good repute,\" he said.<\/p>\n
One thing the JSX could learn from the ASX's management
\noperation was the way it accommodated mining companies.<\/p>\n
He said there were about 1,200 Australian mining companies
\nlisted in the ASX. \"We need to learn from them,\" he said.<\/p>\n
Putu foresaw the possibility of Indonesian-Australian joint
\nventure companies of being listed simultaneously on both
\nexchanges.<\/p>\n
Cooperation would help the exchanges anticipate the future of
\nborderless transactions, he said. \"Today someone does not need to
\nbe present at the exchange and public offerings can be done
\nthrough the Internet\".<\/p>\n
He said market regulators were needed all over the world to
\ninvestigate market manipulation.<\/p>\n
He said there was an increasing flow of funds between Asia-
\nPacific nations and multilateral and bilateral cooperations would
\nhelp protect investors' interests.<\/p>\n
Putu said Bapepam had sent several people to Australia to
\nlearn how to identify market manipulation, how law enforcement
\nwas conducted and how the ASX detected insider trading.<\/p>\n
Bapepam has also signed cooperations with the U.S.' Securities
\nand Exchange Commission, Hong Kong's Securities and Futures
\ncommission and Malaysia's Securities Commission and would soon
\ncooperation with Japan's Securities Commission.<\/p>\n
ASC chairman Alan Cameron agreed with Putu and said
\nthe ASC had signed cooperation agreements with securities and
\nmarket regulators in the U.S, Britain, France, New Zealand, Hong
\nKong, China and Canada.<\/p>\n
Cameron, who is also former president of the committee of
\nInternational Organization of Securities Commission said emerging
\nmarkets in the Asia-Pacific, South America and Eastern Europe
\naccounted for up to 10 percent of global investment funds. (09)<\/p>",
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