JSX chief proposes more leeway for foreigners

JSX chief proposes more leeway for foreigners

JAKARTA (JP): President of the Jakarta Stock Exchange (JSX)
Hasan Zein Mahmud has proposed more leeway for foreign investors
to allow them to buy all, instead of the present 49 percent
maximum, of the shares listed on JSX.

Hasan Zein was quoted by the Antara news agency as saying on
Friday that his suggestion is in line with the new official
policy of permitting 100 percent foreign ownership of companies
in Indonesia.

"I hope the new ruling will also be effective to portfolio
investments so that the JSX gets a significant boost," he said.

He saw it as an emulation of Malaysia's capital market policy
permitting foreigners to buy 100 percent of listed shares on the
Kuala Lumpur Stock Exchange secondary market. The percentage is
limited only in the primary bourse.

"The ruling benefits Malaysian investors who are free to buy
at cheaper prices at the primary market and sell with profit to
foreigners on the secondary market," Hasan.

To allay fear of takeovers by foreigners, Hasan Zein
recommended the stipulation of a complementary ruling giving
foreigners only 49 percent of the voting power relating to the
appointment of corporate management as in some other countries.

Hasan Zein predicted the market capitalization of the JSX this
year to hit Rp 100 trillion (US$46.2 billion), up 30 percent from
Rp 69.3 trillion last year, though progress was slow up through
May when the capitalization rose only to Rp 74.6 trillion.
"Many new issues have entered the exchange, while existing
issues are expanding and share prices steadily rising," he said.
(17)