World Stock Exchanges – Indonesia JCI:INDPosted: February 20, 2013
World Stock Exchanges – Indonesia JCI:IND
|Key people||Ito Warsito, CEO|
Indonesia Stock Exchange (Indonesian: Bursa Efek Indonesia) is a stock exchange based in Jakarta, Indonesia. It was previously known as Jakarta Stock Exchange (JSX) before its name changed in 2007 after merging with Surabaya Stock Exchange (SSX). As end of 2012, the Indonesia Stock Exchange had 462 listed companies with a combined market capitalization of $426.78 billion.
Currently, the index’s all-time high level is at 4,612.04 points on February 18th, 2013.
Originally opened in 1912 under the Dutch colonial government, it was re-opened in 1977 after several closures during World War I and World War II. After being reopened in 1977, the exchange was under the management of the newly created Capital Market Supervisory Agency (Badan Pengawas Pasar Modal, or Bapepam), which answered to the Ministry of Finance. Trading activity and market capitalization grew alongside the development of Indonesia’s financial markets and private sector – highlighted by a major bull run in 1990. On July 13, 1992, the exchange was privatized under the ownership of Jakarta Exchange Inc. As a result, the functions of Bapepam changed to become the Capital Market Supervisory Agency. On March 22, 1995 JSX launched the Jakarta Automated Trading System (JATS). In September 2007, Jakarta Stock Exchange and Surabaya Stock Exchange merged and named Indonesian Stock Exchange by Indonesian Minister of Finance. The current location of the Indonesian Stock Exchange is located in the IDX building in the Sudirman Central Business District, South Jakarta, near the current site of the Pacific Place Jakarta.
Two of the primary stock market indices used to measure and report value changes in representative stock groupings are the Jakarta Composite Index and the Jakarta Islamic Index (JII). The JII was established in 2002 to act as a benchmark in measuring market activities based on Sharia (Islamic law). Currently, there are approximately 30 corporate stocks listed on the JII. The FTSE/ASEAN Indices were launched by the five ASEAN exchanges (Singapore Exchange, Bursa Malaysia, TheStock Exchange of Thailand, Jakarta Stock Exchange, and The Philippine Stock Exchange) and global index provider FTSE on September 21, 2005. The indices, covering the five ASEAN markets, are designed using international standards, free float adjusted, and based on the Industry Classification Benchmark (ICB). The indices comprise FTSE/ASEAN Benchmark Index and FTSE/ASEAN 40 tradable index. The FTSE/ASEAN 40 index is calculated on a real-time basis from 9:00 a.m. and the closing index is calculated at 6:00 p.m. (Singapore time). The FTSE/ASEAN benchmark index is calculated on end-of-day basis.
At May 12, 2011 Indonesia Stock Exchnage officially launched a new Indonesia Sharia Stock Index (ISSI), which comprises 214 Indonesian stocks which have been screened by the Majelis Ulama Indonesia (Indonesia Ulema Council). Fatwa Number 80 from Indonesia Ulema Council is expected to make public no longer have any doubt to make sharia investment in the capital market to eventually increase the number of the domestic investors in the Indonesia Stock Exchange.
Both Jakarta Stock Exchange (JSX) and the Surabaya Stock Exchange (SSX) merged to form a new entity “Indonesia Stock Exchange (Bursa Efek Indonesia). After the merger, the new entity will have seven directors.
At end of 2010, the capitalization is Rp.3,100 trillion and 26 percent of it are 17 state-owned companies listed among 421 companies listed. The greatest company capitalization is also state-owned company: Telkom (Code: TLKM) with Rp.161.2 billion. 7 of 20 greatest amount of capitalization are also state-owned companies.
In June 3, 2011 there are 344,279 local investors registered at the IDX Custodian (KSEI).
As of the end of 2011, foreigners owned 60 percent of publicy traded stock, but throughout the year domestic traders dominated trading with a share of 64.5 percent.