In the second quarter of 1999, the secondary market recovered with increased trading volume on the stock exchanges. Favorable investor sentiments with respect to People’s Consultative Assembly Meeting in October 1999 led to record daily of trading volume of 4.6 billion shares and turn over of Rp 3.1 trillion on the JSX. Before this, typical daily trading averaged Rp 600 billion.

Fifty issuers conducted public offerings in 1999, compared to 23 issuers in 1988. Most issuers used the proceeds of the offerings to restructure capital and to service debt.

The number of investment funds remained at 81, with the addition of four new funds and the closing of four funds.

By the end of 1999, the JSX Composite Index had increased 70% over the level at the end of 1988. The index opened the year at 398 and closed at 676 with a high of 716 on June 21,1999. The upward price trend indicated favorable conditions as to the result of the general election and improvement in prices on other regional stock exchanges.

Trading volume on the Jakarta Stock Exchange increased 97.4% from 90.6 billion shares in 1998 to 178.8 billion shares in 1999. Turnover increased 48.4% from Rp 99.7 trillion in 1998 to Rp 147.9 trillion in 1999.

The Surabaya Stock Exchange (SSX) index rose 61.2% from 351.5 in 1998 to 566.6 in 1999. Turnover increased significantly from Rp 3.1 trillion in 1998 to Rp 13.1 trillion in 1999.

In preparation for the implementation of scripless trading and book entry settlement, Bapepam approved relevant KPEI and KSEI rules on clearing, guarantee and settlement as well as rules on central collective custody services.

In getting ready for book entry settlement, Bapepam approved KPEI and KSEI related rules and worked together with these SROs in educating market participants with respect to the new system. During 1999, 27 pre-emptive rights issues used custodial services of the central securities regulatory.

Surabaya Stock Exchange members on May 26, 1999 voted against merger of the exchange with the Jakarta Stock Exchange. The Surabaya Stock Exchange members approved the decision to focus on mining stocks, derivatives, and government bonds, while the Jakarta Stock Exchange would continue its traditional business.

In 1999, Bapepam licensed 626 new securities company representatives, registered 135 market proffesionals, including accountants, appraisers, legal consultants and notaries.

In rule enforcement, in 1999, Bapepam revoked various individual and company licenses, and one authorization to act as a bank custodian due to rule violation. Bapepam also issued official warning and suspension as sanctions to some issuers and securities companies.

Bapepam revised three rules and issued two new rules during the year. Rule III.A.3 regarding Directors and Commissioners of Stock Exchanges, Rule.V.D.4 regarding Control and Protection of Securities Kept by Securities Companies, and Rule.V.D.5 regarding Maintenance and Reporting of Adjusted Working Capital were revised. New rules included Rule. XIV.B.1 regarding Procedures for Collecting Administrative Fines and Rule.V.D.7 regarding Guidelines for Subordinated Loan Agreement of Securities Companies.

To increase public access of capital market information, Bapepam developed its internet website to include law and complementary regulation, statistics and information regarding licensing, registration, approval, and public offerings. In addition, Bapepam provided an e-mail address (info@bapepam.go.id) to service public requests.

© 1999 Bapepam, All Rights Reserved. Notice.