Firms blast bourses' management

Firms blast bourses' management

JAKARTA (JP): The Indonesian Public Companies Association has urged the managements of the Jakarta Stock Exchange (JSX) and Surabaya Stock Exchange to be more cooperative and transparent in their efforts to develop the market.

Chairman of the association, Sutrisno, told journalists yesterday that the managements of the Indonesian bourses should have discussed with the association some problems which are now hindering market growth.

Citing an example of the problems, Sutrisno noted that last year the share prices of a number of listed companies on the JSX dropped below their initial offering prices and other shares even fell to below their nominal prices.

"But until now, JSX has not asked the association to discuss possible solutions to the steep price falls," he said.

"The fact that approximately 30 percent of the listed stocks have been inactive is another problem that should have been discussed with the association," Sutrisno added.

Sutrisno, who is also a director of PT Gajah Tunggal, conceded that an issuer has no right to interfere in the market but the association, in cooperation with the exchange's management, could discuss and seek a way to help boost the performance of listed companies, particularly the thinly-traded stocks.

"We at the association are concerned because most of the inactive stocks are owned by companies which actually have positive performance and strong growth. But we did not see any efforts from the stock exchange to promote those companies," he said.

"Since the public companies are the products of the exchange, the exchange must be proactive in promoting those listed companies," he added.

Fees

Meanwhile, the secretary-general of the association, Kusnadi Kuyono, urged JSX to reduce its listing and transaction fees.

Kusnadi said that the minimum initial listing fee of Rp 10 million (US$4,347) is still too expensive for a small company. Reducing the listing fee would allow more small firms to list on the exchange.

The association also asked the exchange to reduce the transaction fee which now amounts to 0.07 percent of the cumulative monthly transaction value.

Kusnaedi said a lower transaction fee may attract more investors, and in turn boost the market liquidity.

"It is unreasonable for JSX to impose such a high listing fee to finance market development programs such as remote and scripless trading because the exchange has raised a lot of funds," he said.

The association also urged the Surabaya Stock Exchange to realize its commitment of becoming a bridging stock exchange for small companies because since its acquisition of the over the counter market -- the Indonesian Parallel Bourse -- last July, the exchange has yet to implement a concrete program for the listing of small companies. (08)