Shareholders endorse merger of bourses
Shareholders endorse merger of bourses
JAKARTA (JP): Shareholders of PT Bursa Efek Surabaya, the manager of the Surabaya Stock Exchange, endorsed Tuesday the merger of the company with PT Bursa Paralel Indonesia, the firm managing the parallel or over-the-counter market in Jakarta.
Bursa Efek Surabaya's president, Basjiruddin A. Sarida, said after a shareholders' meeting in Surabaya on Tuesday that the shareholders proposed PT Bursa Efek Indonesia as the new name of the merged firms.
"The shareholders also proposed that the company should have its headquarters in Surabaya," Antara quoted him as saying.
Basjiruddin said the shareholders also hoped that the planned Bursa Efek Indonesia and PT Bursa Efek Jakarta, the manager of the Jakarta Stock Exchange (JSX), would coordinate the single listing of public companies and organize cross trading of shares.
"With the single listing and cross trading, Bursa Efek Indonesia and Bursa Efek Jakarta will not compete against each other except in the quality of services," Sarida said.
Bambang Subianto, chief commissioner of Bursa Paralel Indonesia, said after the company's shareholders' meeting in Jakarta on Monday, that the shareholders had assigned a special team to prepare to merge with Bursa Efek Surabaya within 60 days.
"If the team cannot form the merged market within 60 days, it should report and return the mandate to the shareholders," said Bambang, who is also director general of financial institutions at the Ministry of Finance.
Bambang acknowledged that a number of matters, especially those concerning the relationship between the planned merged market and the JSX, were holding up the merger plan.
He said Bursa Paralel Indonesia would prefer the relationship to be complimentary, to serve small and medium-sized companies and act as a bridge for those wanting to list on the JSX.
However, informed sources at the JSX said that the Jakarta exchange wanted its relationship with the merged exchange to be one of open competition.
The sources said if the JSX accepted BPI's proposal for a complementary relationship, the JSX would have to transfer dozens of its clients, especially those categorized as small and medium enterprises with paid-up capital of less than Rp 50 billion (US$22.5 million), to the merged market. (riz)