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Pidato
MOU SIGNING
CEREMONY
between
Indonesia Capital
Market Supervisory Agency
(Bapepam).
and
The Philippines
Securities and Exchange Commission
The Honorable Chairman of the Securities and
Exchange Commission – the Republic of Philippines,
Madam Lilia R. Bautista,Commissioner Gloria,
Commissioner Poblador, Commissioner Juanita, and
Commissioner Martinez,Distinguished Guests, Ladies
and Gentlemen,
First of all, I would like to thank to all of you
for your warmest welcome and for a very friendly
atmosphere you provided to us today at this very
important occasion, the signing ceremony of MOU
between the Indonesian Capital Market Supervisory
Agency and The Philippines Securities and Exchange
Commission.
This is not the first MOU we have.
We signed our first MOU in 1992 with the United
States Securities and Exchange Commission,
followed by with Hong Kong Securities and Futures
Commission and the Securities Commission of
Malaysia in 1994, with the Australian Securities
Commission in 1997 before it changed its name into
the Australian and Securities Commission, and with
the Sri Lanka Securities Commission last year.
However, we consider the MOU we are going to sign
today will be the most constructive one for
following reasons:
First, as Asean member countries,
our leaders have agreed on the need to address
ASEAN's cohesion as that would be an important
factor for stability in the region;
Secondly, as developing countries,
our economic leaders will take any endeavor to
strengthen our economic cooperation; and
The
last one, as emerging markets, we both share
commitments towards a more robust and vibrant
securities markets in the region.
In view of the last factor I
mentioned, both Philippines and Indonesian
securities markets also share common
characteristics, and both securities commissions
have parallel efforts in prioritizing its agendas
in the years to come. We both assert our
leadership in promoting demutualization of the
stock exchanges. In this effort, both the Jakarta
Stock Exchange and the Philippines Stock Exchange
are facing identical challenges in which both have
more than 150 members with different views on
attempts we made.
We learned also that the Commission has just
celebrated the first year anniversary of its new
governance structure. I am pleased to inform you
that Indonesian government is now working to
restucture organizational and regulatory framework
for financial sector services. Under no
circumstances, the new agency named Indonesian
Financial Services Authority or the Indonesian FSA
will be established early next year, and is
expected to be fully operational in the first
semester of 2004. Your successful experiences in
dealing with transition issues will be worthy to
note and will be a valuable lesson for us to
learn.
Boosting up enforcement activities,
intensifying investors education program,
promoting the implementation of good corporate
governance principles, ensuring transparency and
market integrity, and improving capacity building
for personnel are another comparable priorities
carried on by both Commissions. And – we do
believe – that through this signing of MOU,
achieving those goals will be far more effective.
Chairperson, Commissioners,
Distinguished Guests, Ladies and
Gentlemen,
The liberalization of economic
policies, and the lowering of barriers to capital
flows coupled with the mobility of information as
a consequence of technological developments and
improvement in communication, have given rise to a
globalization that has transcended geographical
barriers. To the extend, capital raising and
investment have expanded internationally and
become a global endeavor and pursuit for borrowers
and investors alike.
In these regards, the MOU we sign
today is expected to improve the effectiveness of
both respected agencies’ supervisory functions,
and is truly a milestone in regulatory cooperation
in an era where there is much truth to the old
maxim that a chain is only as strong as its
weakest link. With this MOU, we are forging a very
strong chain indeed. Finally, the signing ceremony
we have today is a symbol of a very strong
commitment we plan to foster our international
cooperation in the near future.
Thank you.
Metro Manila, 5 June 2002.
Herwidayatmo
Chairman of Bapepam
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