Stock markets near full Y2K compliance

JAKARTA (JP): Share trading after the New Year is not likely to be disrupted by computer glitches caused by the millennium bug, a member of the Y2K team for the capital market said on Wednesday.

Surdiyanto Suryodarmodjo, also the president of the Indonesian stocks clearing and guarantee agency, said all capital market- supporting agencies had taken appropriate measures to confront the millennium bug.

He said their Y2K compliance ranged from 83 percent to 96 percent.

He said the Jakarta Stock Exchange (JSX) was 91 percent ready, the Surabaya Stock Exchange (SSX) 96 percent prepared and the Capital Market Supervisory Agency (Bapepam) 96 percent ready.

Surdiyanto said these institutions had been reviewed by independent auditors, who had tested their internal and external systems.

He said local capital markets were not as heavily exposed to the millennium bug because their operations were not fully computerized.

About 42 percent of the institutions involved still conducted their work manually, he said.

"The slow rate of computerizing the entire system turned out to be a blessing in disguise," he said, noting that the capital markets were still in the early stages of that process.

The Y2K compliance objective was to ensure that businesses ran smoothly after the New Year, he said.

Despite his optimism, Surdiyanto said the capital market Y2K committee had issued a business contingency plan should there be any breakdowns in computer systems in the New Year.

The plans had already been disseminated to members of the capital market, he said.

A Y2K control center has also been established. The head of the center is Bapepam chairman Jusuf Anwar and it comprises representatives of the Indonesian Custodian Bank Association, the Indonesian Securities Companies Association and the Indonesian Share Register Association.

As well as providing solutions, the center will handle prevention efforts by setting up an information center.

The center plans to publish on Nov. 21 the readiness of the capital market on BAPEPAM and JSX websites. (03)