JSX and SSX set to merge in April

JAKARTA (JP): The Jakarta Stock Exchange (JSX) and Surabaya Stock Exchange (SSX) are expected to conclude their merger plan in April next year after the former's shareholders approved the plan in an extraordinary meeting on Friday.

"Our target is that the merger plan is expected to be concluded on April 15 next year," JSX chief commissioner Erry Riyana Hardjapamekas said after the meeting.

He said JSX's shareholders also asked its board of directors on Friday to set up a seven-member team to study the most appropriate options for the merger plan.

The best possible alternatives will be for either acquisition or liquidation, he said.

"This team should have completed their study by February and provide the most appropriate outcome in April to a shareholders meeting," he said.

JSX is slated to hold its annual shareholder meeting in April next year.

Erry said the team, which is chaired by Avi G Dwipayana, of Trimegah Securindolestari, would work with a similar team from SSX to determine the final choice for the merger plan.

Shareholders of SSX also approved for the merger plan on Thursday and agreed to set up a team to observe possible options for the merger plan.

The chairman of JSX's team Avi G Dwipayana said on Friday that he was optimistic that the merger plan could be realized by the end of February.

"If possible, it should be concluded in early January next year," he said.

The SSX and the JSX are the only two exchanges in the country. They trade the same companies but have different management.

Stockmarket experts have long called on the two exchanges to merge to trim the operation costs of the country's listed firms.

Most listed firms prefer to list their shares only on the JSX but they are required by the capital market authority to also list their shares on the virtually inactive Surabaya bourse.

Avi said Friday that the conclusion of the merger plan would mark another milestone in the history of the country's capital market.

"Besides that, consolidating the two exchanges will certainly help the country compete with the global market." He said that merging different exchanges in the same country was a common trend internationally. (aly)