A plan by the management of the Indonesia Stock Exchange to join a
single integrated trading market in the coming years will hinge on the
preparedness of its human resources and information technology, analysts in
Jakarta said.
Reza Priyambada, head of research
at Trust Securities in Jakarta, said that the exchange (IDX) has to improve its
infrastructure system before participating in a link up with other exchanges in
the Association of Southeast Asian Nations.
He cited the IT error nearly two
months ago that crippled the bourse’s main trading server for almost an entire
day, and that was handled poorly by the exchange.
“The recent IT glitch on the
exchange was an indication that the bourse still needs to improve the
infrastructure before it can join the Asean linkage,” Reza said.
Trading on the Indonesia Stock
Exchange almost came to a stop on Aug. 27 because the IT error caused chaos.
The IDX had a technical error in
its main server, allowing only a handful of traders to access the exchange’s
trading server.
“If it can be implemented
smoothly, we can surely see positive impact to the trading activities on IDX,”
Reza noted.
He added that the management of
the local bourse also can increase accessibility to information about
Indonesia’s listed companies, thus attracting more investment.
Their comments come after Ito
Warsito, president director of the IDX, said as quoted by Bloomberg that
Indonesia will connect to the Asean trading link by 2015 at the latest.
“If it becomes policy [to join
Asean linkage] then we still have enough time to prepare ourselves,” said
Samsul Hidayat, a director at IDX, on Tuesday.
Samasul said that the bourses
across the region would need to talk about adjusting their regulations and
resolutions to disputes.
Bloomberg reported on Monday that
Indonesia and Vietnam will join the Malaysian, Singaporean and Thai bourses in
offering cross-border trades within three years as part of a plan to create a
Southeast Asian trading platform aimed at attracting investors.
Hanoi Stock Exchange chief
executive Tran Van Dung said that he expects Vietnam’s two exchanges to join
within two years.
“Participating in the link will
allow local investors to have direct access to other exchanges,” Charamporn
Jotikasthira, president of the Stock Exchange of Thailand, said in an interview
in Taipei. “This connection will bring long- term liquidity to the market.”
The trading platform between the
Asean members is part of a push to bolster regional capital markets and lure
more investors to the exchanges in which companies have a combined market value
of about $2 trillion, according to a statement issued by Asean Exchanges.
Indonesia’s stock exchange is
home to 447 listed companies with a combined market value of Rp 4,088 trillion
($427 billion).
Thailand’s link-up on Tuesday
followed Singapore Exchange, and Bursa Malaysia, which connected to the link on
Sept. 18.
Francezka Nangoy
Additional reporting from
Bloomberg
Business & Investment Opportunities
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