JSX must boost capital mart promotion

JAKARTA (JP): Jakarta Stock Exchange (JSX) management should be more aggressive in its promotion of the capital market to the public, a senior analyst said yesterday.

A capital market analyst, E.A. Koetin, said that there should be more cooperation with universities, for example, to educate people about the important role the capital market plays in the economy.

"Such an approach is much more effective in publicizing the capital market," he said following the launching of his latest book on capital market activities.

Quoting foreign research from the 1970's on stock and bond issuance in emerging markets, Koetin said that most capital markets in emerging countries, including Indonesia, had not yet involved universities in the development of their stock markets.

"Developing capital markets in emerging markets only involved the central banks and the ministries of finance," he said.

JSX director Felia Salim said that JSX had established a cooperation with several Indonesian universities to try to increase public knowledge of the capital market.

"Such efforts are still in the preliminary stages and are expected to increase in the coming years," she said.

Sigma Research Institute's executive director, Jasso Winarto, said the main obstacle to developing the capital market here was a lack of suitable human resources.

This could stop Indonesia from catching up with the rapid growth happening in other emerging stock markets such as Singapore and Malaysia, he said.

"Lack of skill and knowledge about the capital market in JSX management could handicap JSX growth," said Jasso, who edited the book.

Pustaka Sinar Harapan published the book which is called Pasar Modal Indonesia. It was launched to commemorate the fifth anniversary of the privatization of JSX.

The book is targeted at university students and the general public and costs Rp 60,000 (US$25) in hard cover and Rp 40,000 in soft cover.

"The book is expected to become the capital market reference in Indonesia," Aristides Katoppo of Pustaka Sinar Harapan said. (aly)