'Maintain investors' trust'<\/p>\n
JAKARTA (JP): President Soeharto inaugurated the Jakarta
\nAutomated Trading System (JATS) on the city's capital market
\nyesterday, calling on related parties to maintain investors'
\ntrust in domestic capital markets by giving them increased
\nprotection.<\/p>\n
\"I ask the capital market authority to maintain and enhance
\ninvestors' trust,\" Soeharto said at the inauguration ceremony at
\nthe Jakarta Stock Exchange's (JSX) trading floor.<\/p>\n
\"If the investors don't trust on (local) stock markets, they
\nwill easily transfer their funds to capital markets in other
\ncountries.\"<\/p>\n
Soeharto also called on the management of stock exchanges to
\nrun the markets efficiently so that public companies which seek
\nfunding from the markets can grow healthily.<\/p>\n
He suggested that the stock market management charge market
\nplayers the necessary fees only. In such a way, Soeharto said,
\nlocal stock markets will have a competitive edge.<\/p>\n
\"It is necessary for me to speak of this matter because the
\naim of our stock markets is not merely to collect profits but
\nalso to provide services so that the stock markets can run
\nnormally, properly and efficiently,\" Soeharto said.<\/p>\n
Indonesia currently has two stock exchanges, the JSX in
\nJakarta and the Surabaya Stock Exchange in Surabaya, both of
\nwhich are run by privately-own limited liability firms.<\/p>\n
Concern<\/p>\n
Soeharto also expressed concern over the relatively small
\nnumber of domestic capital market investors, which number only
\n200,000, or 0.1 percent of the country's total population.<\/p>\n
\"This number is much lower than those in other countries in
\nAsia. This situation requires us to find ways of supporting
\ndomestic investors so that they can play more pivotal roles on
\nlocal stock markets,\" he said.<\/p>\n
Soeharto noted that an exchange with a strong basis of
\ndomestic investors would make a substantial contribution to the
\ncountry's economic development.<\/p>\n
In order to attract more people to enter the stock markets,
\nSoeharto stressed the necessity for publicly-listed companies, as
\nwell as those which have already fulfilled the requirements for
\nbecoming public companies, to uphold the principles of
\ninformation disclosure.<\/p>\n
Another way to net more domestic investors, especially small
\nones, Soeharto said, is by forming mutual funds; either open-
\nended or close-ended.<\/p>\n
He said having stock trading automation like JATS serves as
\nanother way to increase the number of domestic investors.<\/p>\n
At the same ceremony, Minister of Finance Mar'ie Muhammad
\nexplained that JATS serves as an integrated system connecting
\ntrading, clearing and settlement, depository and broker
\naccountancy. JATS is also supported by a sub-system handling
\ntrading surveillance, membership, listing and data management.<\/p>\n
Mar'ie said the automation of the JSX started on May 22, when
\ntrading was carried out for the first time using computers. In
\nthe fourth quarter of this year, he said, new trading functions
\nwill be introduced, including the installation of a surveillance
\nsystem and trading support systems.<\/p>\n
The next phase of the JSX's automation, Mar'ie said, will be
\ncommenced next year by introducing remote trading, by which
\ninvestors from outside Jakarta will be able to carry out stock
\ntransactions from their home towns.<\/p>\n
The final phase of the automation, which is expected to also
\nbe ready next year, is the introduction of scripless trading, in
\nline with the book entry settlement of custodian institutions and
\nclearing houses.<\/p>\n
In accordance with the implementation of JATS, Mar'ie said,
\nthe JSX has gradually developed networks with its information
\ncenters in cities outside Jakarta, the SSE's trading galleries,
\ncustodian firms and clearing houses, as well as with data
\nvendors, including the Antara and Reuters news agencies. (rid)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/maintain-investors-trust-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }