Makindo sees bright future for online stock trading<\/p>\n
JAKARTA (JP): The country's first securities company offering
\nonline stock trading, PT Makindo, expects to attract one million
\nclients in the next five years.<\/p>\n
\"Indonesia has no problem coming up with one million
\ninvestors,\" Makindo president Gunawan Jusuf told reporters on
\nSaturday during a seminar and training session on online trading
\nhere.<\/p>\n
Gunawan said that if Internet trading campaigns continued, the
\ncompany might have attracted one million investors by the year
\n2005 or even 2003.<\/p>\n
Internet stock trading, or online trading, allows stock
\ninvestors to place, buy or sell orders or check real-time market
\ninformation over the Internet.<\/p>\n
Given the Internet's character, investors can place orders at
\nany place and at any time, by using cellular phones, for example.<\/p>\n
Gunawan said that with the easy access to real-time market
\ninformation, investors could make better investment decisions and
\nlearn to evaluate their portfolio privately, without relying upon
\nbrokers.<\/p>\n
\"The kind of information that cybertrade allows investors to
\nsee was once only accessible to brokers. The information is in-
\ndepth and real time,\" he said.<\/p>\n
Furthermore, Gunawan said, Internet trading could cut
\ntransaction fees down to only one fifth of normal trading fees.<\/p>\n
He said that commission fees charged by brokers were normally
\nbetween 0.3 percent to 0.5 percent of the transaction value,
\nwhile Makindo charged only 0.1 percent.<\/p>\n
But he added that the full potential of online trading was
\nstill awaiting the implementation of remote trading, which is
\ncurrently being prepared by the Jakarta Stock Exchange (JSX).<\/p>\n
According to existing trading regulations, investors can only
\ncarry out stock transactions through brokers.Investors must
\nsubmit online orders to Makindo, which then executes them on the
\ntrading floor, Gunawan said.<\/p>\n
\"Brokers carry out instructions straight from the Internet ...
\nbut it is still a two-stage process,\" he said.<\/p>\n
However, he said, once JSX applies its remote trading system,
\ninvestors can immediately make orders without Makindo or a
\nbrokers' help.<\/p>\n
\"The presence of floor traders in the New York Stock Exchange
\nfor example is only a showcase, the majority of transactions
\noccur outside the bourse (through remote trading),\" he explained.<\/p>\n
He said that with remote trading, investors could expect much
\nfaster executions of their orders. \"We're talking minutes here,
\nand in stock trading a minute can make a big difference,\" he
\nsaid.<\/p>\n
Gunawan said that stock exchanges in other countries had
\nalready adopted remote trading as well as Internet stock trading.<\/p>\n
On the prospect of Internet stock trading, he said that
\nMakindo was aiming at investors living outside Jakarta, including
\nindividual foreign investors.<\/p>\n
With the implementation of wider provincial autonomy, he
\nestimated that more investors would come from outside Jakarta.<\/p>\n
Company corporate secretary Luhut Silalahi said that since its
\nlaunch in April, Makindo's online trading had attracted over
\n1,000 clients. But only 250 of them were active, he added.<\/p>\n
Asked why Makindo was investing in Internet trading while the
\nstock market was still bearish, he answered that gloomy times
\nheld the best investment opportunities.<\/p>\n
He said that Makindo had spent some Rp 50 billion (US$5.6
\nmillion) to develop the Internet trading system. He hoped the
\ncompany would break even by the year 2003.<\/p>\n
At Makindo's website, investors can look up not only real-time
\nstock quotes, but also market and stock analyses, review their
\nportfolios and orders, read companies profiles and news, among
\nother things.<\/p>\n
The company also offers basic stock quotes to clients on
\nwireless application protocol (WAP) enabled mobile phones. (bkm)<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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