KL brokers to enter RI

KL brokers to enter RI

JAKARTA (JP): Nine brokerage companies from Malaysia are
seeking approval from the Capital Market Supervisory Agency
(Bapepam) to enter the Indonesian capital market.

Agus Muhammad, the head of Bapepam's transaction department,
said that the capital market watchdog is still processing
licenses for the nine Malaysian brokerage firms.

He said that the nine companies of the neighboring country are
T.A. Berhard, Lancar Baiduri Sdn Berhard, Omega Holding, Pileo
Allied Berhard, Widervale Assets Limited, Apec Equity Holding
Berhard, MBF Berhard, Hong Liong Berhard and Pengkaleng Holding
Berhard.

The nine firms will operate in partnership with local
brokerage companies. T.A. Berhard, for example, will form a joint
venture with PT Arya Prada, according to Bisnis Indonesia
Saturday.

Lancar Biaduri will forge a partnership with PT Buraksa
Perkasa, Omega with PT Artha Adyanugraha, Pileo Allied with PT
Dwi Oance Rejeki, Widervale with PT Kestrel Indonesia, Apec
Equity with PT Interindo Dana Praja, MBF with PT Agung
Securities, Hong Liong with PT Intisekuriti Investama and
Pengkaleng Holding with PT Buanamas Investindo.

Agus said that a business partnership with foreign companies
is an essential breakthrough to strengthen the capital structure
of local brokerage companies.

More than 170 securities companies are operating as brokers or
both as brokers and underwriters here at present, 30 of which are
joint ventures.

Big foreign players in the local capital market include
Merrill Lynch, Salomon Brothers, HG Asia, Morgan Grenfell,
Schroders and Nomura. (hen)