SSE, BPI to meet on merger plan
SSE, BPI to meet on merger plan
JAKARTA (JP): The Surabaya Stock Exchange (SSE) and the over-
the-counter market, Bursa Parallel Indonesia (BPI), will soon
hold extraordinary meetings of their respective shareholders to
decide their merger plan.
Executives of the two exchanges said over the weekend that
details on the plan of trading unification would also be
discussed during the meetings.
SSE's president, Basiruddin A. Sarida, described the
shareholders' meetings as merely formality as both stock markets
have reached a firm commitment to giving a positive response to
the government's unification proposal.
The government proposed recently the unification of the
Surabaya-based SSE and BPI in Jakarta to improve trading
liquidity and efficiency.
Chairman of the Capital Market Supervisory Agency (Bapepam)
Bacelius Ruru said that such unification should be carried out
before June.
BPI was established in late 1990 by the association of money
and securities traders as the first over-the-counter (parallel)
market in the country.
Its operation, however, has not been so successful and most
share issuers still prefer listing their stocks on the Jakarta or
Surabaya Stock Exchanges. The number of companies listed on the
parallel market is less than 10.
The SSE was established in 1989 as the first privately owned
stock market in the country and the only stock market located
outside Jakarta.
Its operation relied much on the government's listing policy,
requiring share issuers to list their shares on both Jakarta and
Surabaya markets during its early operation.
The double listing facility was thwarted following the
privatization of the Jakarta stock market in 1992.
Trading on the Surabaya market is also not so active and most
of its share transactions take place in its Jakarta branch.
Basiruddin said that the unified stock exchange will be based
in Surabaya while its transaction activities would be allowed in
the exchange's branches.
He said that the unified stock exchange will adopt an
electronic trading system used by NASDAQ, the U.S. over-the-
counter stock market.(hen)