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)