Bapepam plans to attract more local investors

Bapepam plans to attract more local investors

JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
will work to make the country's stock exchanges more attractive
to local investors, the agency's chief said.

Bacelius Ruru told reporters here on Monday that domestic
investors need to improve their role in daily trading to
stabilize the capital market because 70 percent of daily
transactions are now dominated by foreign investors.

"Our long-term policy is to encourage increased participation
of local investors because the stock market will have a stronger
foundation when they dominate the market," he said during a press
conference marking the 17th anniversary of the country's capital
market reactivation.

He explained that Bapepam, in its attempts to attract local
investors, will take several steps, including encouraging the
establishment of open-end investment companies managing mutual
funds.

Bapepam has also proposed that the government increase the
ceiling of portfolio investments made by pension funds from the
current 10 percent of their total funds, he said.

Ruru said Bapepam will also increase its supervision of the
activities of share issuers to protect the interests of the
investing public.

Bapepam, for example, will always request that share issuers
meet the lofty promises mentioned in their prospectuses, he said.

He claimed Bapepam will also improve enforcement of
regulations on the capital market. (yns)