Only 39% of JSX shareholders eligible to nominate directors
Only 39% of JSX shareholders eligible to nominate directors
JAKARTA (JP): The Jakarta Stock Exchange (JSX) yesterday said
that only 39 percent of its 197 shareholders are qualified to
nominate the exchange's new boards of directors and
commissioners.
"We reported to the Indonesian Capital Market Supervisory
Agency (Bapepam) on Monday that 78 securities companies,
comprising 55 locals and 23 joint ventures, meet the agency's
requirement," said a director of the JSX, Mas Achmad Daniri.
Bapepam's regulations stipulate that the exchange's members
who nominate JSX's directors and commissioners must have a
minimum trading value and frequency of 0.20 percent of the total
during the last twelve months.
Daniri said that from March 1, 1995 to Feb.29, 1996, JSX's
total trading value reached Rp 74.7 trillion (US$32.1 billion)
with a total trading frequency of 1.4 million transactions.
The 10 most active brokerages accounted for 48.20 percent of
the total trading value, in which eight of them were joint
venture securities companies.
PT Makindo was on the top of the list with a Rp 6.5 trillion
trading value or 8.8 percent of the total, followed by PT Jarding
Fleming Nusantara with 6.69 percent, PT WI Carr with 5.97
percent, PT HG Asia with 5.63 percent, PT Credit Lyonnais Capital
Ind. with 4.92 percent, PT Barclays Niaga Securities with 4.90
percent, PT Peregrine Sewu Securities with 3.15 percent, PT
Baring Securities with 3.13 percent, PT Lippo Securities with
2.96 percent and PT Usaha Bersama Sekuritas with 2.05 percent.
Data from the JSX shows that 81 securities companies passed
the minimum trading value requirement but three of them failed to
meet the minimum frequency.
Some 23 companies had a trading value below 0.01 percent and
16 of them were inactive the whole year.
A director of PT Sigma Batara, Ignasius Yonan, told The
Jakarta Post that as a JSX shareholder his company will vote.
"But we will not fight over the winner. We will support
whoever is elected even if they aren't our choice," he said.
An executive of a joint venture securities company said that
his company was not prepared for the election.
"We're just learning of the new procedures," he responded to
the Post.
The president of a local securities company, who asked not to
be identified, said "I'm still traumatized by last year's
experience."
"And I'm afraid there will be a repeat of that in the
forthcoming election. To tell the truth, I do not understand why
the election last year was marred by personal attacks among the
candidates," he added.
On March 14 last year, JSX shareholders elected its board of
directors for the first time since the exchange was handed over
to private management in 1992.
The election ended at 2 a.m., 11 hours after the scheduled
close of the shareholders meeting.
Outside the meeting, which was participated in by
representatives of 202 securities companies, copies of a three-
page open letter were circulated. The letter personally attacked
a noted economist and a securities analyst thought to support a
particular candidate. (08)