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)