Susilo opens 2005 trading in quiet bourse

Susilo opens 2005 trading in quiet bourse

Rendi A. Witular, The Jakarta Post, Jakarta

President Susilo Bambang Yudhoyono made his first visit to the
Jakarta Stock Exchange (JSX) on Monday to open trading for the
new year while most brokers were still on holiday.

Prior to ringing the bell to mark the beginning of trading at
9:29 a.m. Jakarta time, Susilo urged capital market players to
help support the reconstruction effort in Aceh and North Sumatra.

Escorted by Coordinating Minister for the Economy Aburizal
Bakrie and Minister of Finance Yusuf Anwar, Susilo also spoke
briefly on economic issues.

The President also held a discussion with capital market
investors, analysts and brokers, relaying his concerns over the
capital market watchdog. He said the unprofessional attitude of
its officials had reduced investor confidence in the stock
market.

"I have urged the Capital Market Supervisory Agency to be more
professional in supervising the capital market and to uphold the
law," he said, referring to Bapepam.

Last year, Bapepam took only one market violation to the
Attorney General's Office.

Analysts believe the weak law enforcement is a result of
spiraling graft practices at Bapepam, as companies being
inspected or investigated by the agency often bribed its
officials in exchange for lenient penalties.

Acting Bapepam chairman Darmin Nasution said the agency was
undertaking efforts to become more professional and clean,
particularly in reviewing capital market laws and regulations for
loopholes that left an opportunity for fraud and backroom deals.

"Aside from speeding up the investigation into 22 capital
market violations, we are also trying to revise a number of
regulations to prevent certain parties from abusing them...," he
said.

Trading remained thin on the JSX's first day of business, and
the Jakarta Composite Index ended slightly higher by 0.644 points
at 1000.877 with a volume of 460 billion shares worth Rp 584
billion (US$64.8 million).

Brokers attributed the slight increase on low buying and
trading activities, as most investors and brokers were on leave
and would be until next week.

"Trading was slow, but Susilo's short speech sent a positive
signal to the market. The market will remain cautious over the
government's concrete economic policies expected within the
month," said a broker.

In his speech, Susilo underlined the government's intent to
ensure a business climate conducive to investment by implementing
good governance, ensuring social stability and security,
establishing legal certainty, simplifying bureaucratic procedures
and combating corruption.

He also warned that terror attacks, separatist movements and
ethnic or religious conflicts could still occur this year, but
that the government remained on high alert and would launch an
all-out effort to mitigate any ensuing impacts on the economy.