Stock Exchange still Considering ASEAN Linkage
Monday, 15 February, 2010 | 19:10 WIB

TEMPO Interactive, Jakarta:The Indonesia Stock Exchange is still considering Indonesia’s participation in the ASEAN Linkage, electronic stock trade between members countries of ASEAN.

“We still have to evaluate its strengths and its weaknesses,” said Indonesia Stock Exchange Technology Director Adikin Basirun in Jakarta yesterday.

According to Adirun, even though it is still under consideration, the Stock Exchange authority has prepared the medium and the infrastructure to support the program.

Several preparations being carried out include the preparedness of stock exchange members, regulation synchronization, harmonization and equivalence of each country.

Infrastructure in the form of information technology is also being prepared.

Adikin Basirun predicts that Indonesia will be ready to apply ASEAN Linkage in 2013.

Besides Indonesia, several neighboring countries are preparing various mediums to apply the program.

“Indonesia is not the only country that is not ready for the transaction merger,” he said.

The most difficult thing to be carried out is inter-nation harmonization.

This is because each country has different regulations.

Currency trade, stock conversion and tax rules are also the main focus.

“The Indonesia stock exchange has to prepare itself to compete in ASEAN market,” he said.

According to Adikin, in a short time not every ASEAN country will agree to apply the transaction fusion.

In the first stage, Malaysia and Thailand will merge, followed by the Philippines and Singapore.

Previously, the Head of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) Fuad Rahmany said that he had not decided yet on Indonesia’s participation in the ASEAN Linkage.

Fuad questioned the market merger from the macroeconomic perspective because he was not sure it will benefit Indonesia.

The policy is to only benefit neighboring countries, such as Malaysia and Singapore.

Besides that, the free market is to attract local investors to invest abroad.

As an example, he cited India and China which have high market capitalization without having opened their markets to other countries.

Famega Syavira