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Mon, 30 Nov 1998

JP/Special team will study stock exchanges' merger plan

Special team will study stock exchanges' merger plan

JAKARTA (JP): The Jakarta Stock Exchange (JSX) and Surabaya Stock Exchange (SSX) have set up a special team to study the two exchanges merger plan.

The exchanges said in a joint statement Saturday that the team would study the best options that could be carried out in uniting them.

The merger could be carried out either by uniting the two exchanges into a single entity, thereby liquidating one or the other, or only through an acquisition of shares by the larger exchange so that both companies would still survive after consolidation.

Results of the team's study are expected to be delivered to the management of the two exchanges by the latest on Jan. 4 and be further given to the shareholders by the end of March next year.

"The shareholders of the two exchanges are expected to approve the results of the team's study," says a statement signed both by JSX president Cyril Noerhadi and SSX president Bibin Busono.

The 14-member team includes Avi G Dwipayana of Trimegah Securindolestari, Hindarmodjo Hinuri K. of Yayasan Pendidikan Pasar Modal Indonesia, H. Parman Zuharman Jakaria of Jasabanda Securities, Iwan Margana of Pratama Penaganarta, Widhayati Hendropurnomo of Lippo Securities, Budi Prasetyo of PT Indosat, Sri Indrastuti Hadiputranto of Hadiputranto, Hadinoto & Partners accounting firm, H. Nurkhamid of ArgaArtha Securities, Agus Prodjosasmito of Danarekaa Sekuritas, L.G. Rompas of Mashill Jaya Securities, Herman Afif Kusumo of the Indonesian Mining Association, Basroni Rizal of Intiteladan Arthaswadaya, Lily Widjaja of Merrill Lynch Indonesia and H.M.S. Sembiring of Mitra Duta Sekuritas.

The shareholders of the two exchanges agreed in principle late last month to merge as part of their consolidation process in order to create greater efficiency and to face the stiff competition in the global market.

The JSX and SSX are the only two exchanges in the country but stock market experts have long called on them to merge to trim the operational costs of the country's listed firms. (aly)