US$6.9 billion raised through capital market

JAKARTA (JP): The total funds raised through the Indonesian capital market from January to Dec. 23 this year reached Rp 16.28 trillion (around US$6.9 billion).

Chairman of the Capital Market Supervisory Agency (Bapepam) I Putu Gede Ary Suta said Tuesday there were 19 initial public offerings this year, 13 bond issuances, and 36 rights issues, raising, respectively, Rp 2.66 trillion, Rp 2.84 trillion and Rp 10.78 trillion in fresh funds, or an increase, respectively, of 11.8 percent, 44.4 percent, and 111.8 percent over last year.

He said that the cumulative funds raised through the capital market from early 1980s until Dec. 23, 1996, reached Rp 60.37 trillion, a 38 percent increase from the December 1995 level of Rp 44.1 trillion.

He said that as of Dec. 23 listed companies in the capital market totaled 267.

This year saw a very rapid growth in the number of mutual funds, he said.

"Last year we only had one mutual fund -- the BDNI mutual fund. But as of Dec. 23 we now have 22 mutual funds with a total net asset value of Rp 2.28 trillion," Putu announced at a year- end press briefing.

He added that the agency was now processing five more mutual fund applications.

Putu said that the trading volume on the Jakarta Stock Exchange (JSX) from January to Dec. 23 increased 171.9 percent to 29 billion shares, from 10.6 billion shares in 1995. Trading volume on the Surabaya Stock Exchange (SSX) was down 10.5 percent from 1.7 billion shares last year to 1.5 billion shares this year.

The JSX trading value increased 130.1 percent from Rp 32.36 trillion last year to Rp 74.44 trillion this year, while the trading value declined 22.7 percent on the SSX, from Rp 5.25 trillion last year to Rp 4.06 trillion this year.

He said that foreign investors still dominated trading despite a slight decline in their trading role.

Foreign trading activities decreased 6.85 percentage points from 67.03 percent last year to 60.18 percent of total trading, while domestic trading increased 6.85 percentage points from 32.97 percent last year to 39.82 percent of total trading this year.

The JSX composite index reached 624.45 points as of Dec. 23, an increase of 110.61 points over last year.

On Dec. 9 the index reached its peak level of 634.57 points.

JSX market capitalization reached Rp 212.54 trillion, or 40 percent higher than last year.

Putu did not mention next year's target.

"There are still many things to do next year to improve our capital market.

"We'll urge our local investors to become more active in the capital market. I think one thing we can do to activate the local investors is to encourage the formation of more mutual funds," he said.

He also said the agency would develop new products in the capital market, such as warrant, option and future trading.

"We have here 10,000 companies which have the potential to list their shares. We'll encourage them to tap the capital market for fresh funds."

He also promised that his agency would make an effort to improve market efficiency, human resources, and enforce existing regulations.

According to Putu, the agency has until now issued 114 capital market regulations. Two regarding the sale of mutual funds as well as prospectuses and financial reports were issued on Tuesday as a follow-up to capital market Law No.8/1995, which was issued last year.

He said that the agency would soon issue seven more regulations, which will change all of the regulations that were issued before Law No.8/1995. (bnt)