Surabaya bourse to elect new bosses on Monday

Surabaya bourse to elect new bosses on Monday

JAKARTA (JP): The shareholders of the Surabaya Stock Exchange
(SSX) will elect new management on Monday from among the three
nominated teams of directors and the two teams of commissioners
approved by the Capital Market Supervisory Agency (Bapepam).

Bapepam has ordered the election in line with its ruling on
nomination procedures, even though the current management has
served only one year of its three-year term.

The ruling stipulates that the exchange's management must be
nominated by at least three securities companies with a minimum
trading value and frequency of 4 percent of the total during the
previous 12 months.

Data from the SSX show that only 32 of SSX's 112 shareholders
were qualified to nominate the candidates.

The three nominated boards of directors are led respectively
by SSX's current president, Basirudin A. Sarida, PT Mashill
Securities president Isaka Yoga and PT Antaboga Securities T.Umar
Laksamana.

Isaka's team consists of three SSX executives, Anton
Natakoesoemah, Bibin Busono and L.M. Syahril Madjidi.

Basirudin's team consists of Mario M.Koetin, Muda Antartikawan
and Indra S. Hadikoesoemo.

Laksamana's team includes Helmy T.Ashwary, Syafrullah Sahari
and M.Samsul.

One of the two nominated boards of commissioners is headed by
SSX's present chief commissioner, who is also the director
general of financial institutions at the finance ministry,
Bambang Subianto. The other one is led by Mohammad Noer, a former
governor of East Java.

Bambang's team consists of Adrian Kiki Ariawan, Tito Sulistio,
H. Moch. Zuhdi and Nurkhamid Akhmad. Mohammad Noer's team
consists of TB.Mochtar Atmadja, Ackmal Husin, Mas Abdurachim
Husein and Muhammad Nurdin Nasution.

The state-owned securities company, PT Danareksa, yesterday
claimed that together with PT Indovest Securities, PT Pentasena
and PT Bhakti Investama, it has nominated the management team led
by Isaka Yoga and Bambang Subianto's team of commissioners.

"We believe that the SSX needs young people to make it more
attractive. And I am sure that the team we nominated will be able
to introduce more innovative products on the SSX," Danareksa's
president Agus Projosasmita told journalists here yesterday.

Agus also claimed that his team is supported by 61 of SSX's
112 members.

The three nominated boards of directors plan to focus their
program on how to develop the SSX into a bourse complementary to
the Jakarta Stock Exchange (JSX).

"It is almost futile for SSX to compete with JSX. We also
realize that the new management should enforce the SSX's mission
as a bridging stock exchange for small and medium size
companies," Isaka Yoga told reporters yesterday.

Basirudin said that "big companies can also be listed on SSX
because the exchange allows crossing transactions to the JSX."

The latest data show that only 10 of the 189 companies on the
SSX are listed on the basis of the single listing agreement.
Eight of them were formerly listed on the Indonesian over-the-
counter market (BPI), which was acquired by and integrated into
the SSX in July 1995.

The other 178 companies are listed on the JSX and SSX under
cross listing arrangements.

There are 47 listed bonds and six of them are also listed on
the JSX.

The three teams said that they will accelerate the development
of the SSX by focusing on securities products which are not
available at the JSX, such as odd lot shares (100 shares), and by
creating an efficient system.

SSX was founded in 1989 as the first private stock exchange in
the country in order to accommodate both small companies and
small-scale investors.

The exchange has yet to perform well. It booked total
transactions worth only Rp 6 trillion in 1993, Rp 3 trillion in
1994 and Rp 5 trillion in 1995.

The total frequency reached 3,780 transactions in 1994 and
6,360 transactions last year.

Each of the nominated teams promised that they will develop an
efficient system which allows brokers and investors to trade
actively by improving the market maker mechanism.

Under a market maker mechanism the broker acts as a trader not
as a broker.

Agus Projosasmita said that the SSX should find out whether
small share issues will be absorbed by the market.

"That's why cooperation between the exchange and underwriters
is very significant," Agus said.

"There should be supply and demand in any kind of market. In
the case of the SSX, we have to try to find the demand for small
stocks," Isaka added.

Isaka added that his team will also urge the SSX shareholders
to open offices in Surabaya because only seven of the SSX's
shareholders have branch offices in Surabaya. The remaining 95
companies are based in Jakarta. (08)