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Indonesia Stock Exchange
Indonesia Stock Exchange (IDX) or in Indonesian Bursa Efek Indonesia (BEI) 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 of 31 December 2007, the Indonesia Stock Exchange had 383 listed companies with a combined market capitalization of $212 billion.
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.
History of Indonesia stock Market
The capital market in Indonesia has actually exist long before the Independence of Indonesia. The first stock exchange in Indonesia was established on 1912 in Batavia during the Dutch colonial era. At that time, the Exchange was established for the interest of the Dutch East Indies (VOC).
During those era, the capital market grew gradually, and even became inactive for a period of time due to various conditions, such as the World War I and II, power transition from the Dutch government to Indonesian government, etc.
Indonesian government reactivated its capital market in 1977, and it grew rapidly ever since, along with the support of incentives and regulations issued by the government.
Currently located at :
The Indonesia Stock Exchange Building
Jl. Jend. Sudirman Kav 52-53
South Jakarta 12190
- Pre-Market Session: 09:10 – 09:30
- Normal Trading Session: 09:30 – 16:00
Trading regulations at :
Since the late 1980s, Indonesia has made significant changes to its regulatory framework to encourage economic growth. This growth was financed largely from private investment, both foreign and domestic. U.S. investors dominated the oil and gas sector and undertook some of Indonesia’s largest mining projects. In addition, the presence of US banks, manufacturers, and service providers expanded, especially after the industrial and financial sector reforms of the 1980s. Other major foreign investors included India, Japan, the United Kingdom, Singapore, theNetherlands, Qatar, Hong Kong, Taiwan and South Korea.
The economic crisis made continued private financing imperative but problematic. New foreign investment approvals fell by almost two-thirds between 1997 and 1999. The crisis further highlighted areas where additional reform was needed. Frequently cited areas for improving the investment climate were establishment of a functioning legal and judicial system, adherence to competitive processes, and adoption of internationally acceptable accounting and disclosure standards. Despite improvements in the laws in recent years, Indonesia’s intellectual property rights regime remains weak; lack of effective enforcement is a major concern. Under Suharto, Indonesia had moved toward private provision of public infrastructure, including electric power, toll roads, and telecommunications. The financial crisis brought to light serious weaknesses in the process of dispute resolution, however, particularly in the area of private infrastructure projects. Although Indonesia continued to have the advantages of a large labor force, abundant natural resources and modern infrastructure, private investment in new projects largely ceased during the crisis.
The stock market capitalization of listed companies in Indonesia was valued at $81,428 million in 2005 by the World Bank.  Even though the Indonesian Investment Coordinating Board (www.bkpm.go.id) likes to project the impression that foreign direct investment is welcome in the country, many of the country’s laws and regulations are tilted against foreign investors. For example, potential foreign investors and their executive staff cannot maintain own bank accounts in Indonesia, unless they are tax-paying local residents (paying tax in Indonesia for their worldwide income).