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)