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)