International Affairs

The development of Indonesian Capital Market is closely influenced by international progress, either economic, social, or politic. Recognizing this fact, Bapepam has been active in international relationship, either bilaterally or multilaterally.

Since 1992, Bapepam has become a member of International Organization of Securities Commission (IOSCO), which embraces the securities regulators around the world. This organization facilitates and encourages its members to communicate, cooperate, and exchange information in order to enhance the development of domestic markets, as well to unite effort to establish standards of system and mechanism of capital market activities among its members.

As an active member of IOSCO, Bapepam always follows up IOSCO updates and activities. Bapepam actively participates in Presidents’ Committee, Asia Pacific Regional Committee (APRC), and Emerging Market Committee (EMC).

On February 3 to 5, 2002, Indonesia has been honored to host a meeting of securities regulators that are members of IOSCO APRC, as well as a meeting of Enforcement Directors. The meetings were located in Bali, attended by 14 Chairmen and 12 Enforcement Directors of APRC members. The meeting once again stressed out the commitment of its members to enhance the institutional cooperation to exchange information and provide mutual assistance among members to increase investor protection.

Besides that, Bapepam also actively takes part in regular meetings of IOSCO committees, such as IOSCO Annual Conference in Istanbul, Turkey, on May 2002 as well as EMC meeting in Kuala Lumpur, Malaysia on October 2002.

Furthermore, Bapepam has also been appointed as a member of Islamic Capital Market Task Force recommended by IOSCO to analyze the existence and development of islamic capital market. The task force held its first meeting in Kuala Lumpur Malaysia, on November 1, 2002. By joining the task force, it is hoped Bapepam would be able to provide contribution for the syariah research team of Bapepam in which at the present time has also been reviewing the possibility of syariah capital market implementation in Indonesia.

Bapepam, currently, has been reviewing resolutions established by IOSCO to consider the possibility of adopting those that are befitting Indonesian condition at present time. This effort was made as an attempt to adjust Indonesian standards with the international ones. Up to moment, Bapepam has adopted two IOSCO resolutions, i.e. Resolution on Money Laundering which was adopted in 1993 and Resolution on Commitement to Basic IOSCO Principles of High Regulatory Standards and Mutual Cooperation and Assistance, which was adopted in 1996.

In addition, Bapepam has finished reviewing the application and questionaires of IOSCO multilateral Memorandum of Understanding, which was launced by IOSCO in anticipating the increased market integration, growth of cross border activities in securities and derivatives markets, and as an aftermath of the 11 September 2001 events. IOSCO hopes that the multilateral MOU may serve the objectives set out by IOSCO, i.e. to enhance the detecting and deterring of cross-border financial crimes and to better ensure the compliance with and the enforcement of regulation within the jurisdictions of IOSCO members.

In year 2002, Bapepam has also attended other international events. Among other things were, Tokyo Round Table 2002 (Tokyo Seminar on Securities Market Regulation); ADB Annual Meeting in Shanghai, China, Conference to Strengthen the Credit Rating Discipline in Asia in Manila, Philippines; Regional Seminar on Supervision of Market Intermediaries in Shanghai, China; East Asia Economic Summit 2002 (The World Economic Forum); and a Regional Seminar on Non-Bank Financial Institutions in East Asia

As an attempt to enhance mutual cooperation with other securities regulators, Bapepam, during 2002, has signed bilateral MoUs with Securities and Exchange Commission of Sri Lanka on February 4, 2002 in Bali and with Securities and Exchange Commission of the Philippines on June 5, 2002 in Manila, Philippines. The core of the MoUs was an agreement of mutual assistance to enhance the capital market industry development and exchange of information in relation with enforcement. At the present time, Bapepam is still preparing the signing of bilateral MoUs with China Securities Regulatory Commission, Securities and Exchange Board of India, Securities and Exchange Commission of Thailand, Securities and ExchangeCommission of Pakistan, and State Commission of Vietnam.

In Year 2002, the State Commission of Vietnam accomplished a comparative study in Bapepam in order to understand the Indonesian capital market regulatory mechanism and also to invite a bilateral agreement.

In the future, Bapepam is committed to increase the bilateral and multilateral relationship and cooperation, particularly those that involve coordination, exchange of information, and training in order to improve its human resources.

Table of Contents Bapepam Annual Report 2002

© 1999 Bapepam, All Rights Reserved. Notice.