Bapepam-LK not submitted yet margin proposal

as published in Bisnis Indonesia daily newspaper

Wednesday, 16/12/2009 00:00 WIB

Bapepam-LK not submitted yet margin proposal

JAKARTA: Capital Market and Finance Institution Supervisory Agency (Bapepam-LK) could not propose the recommendation of the Indonesia Securities Companies Association (Asosiasi Perusahaan Efek Indonesia/APEI) in the margin transaction regulation of IDX early next year.

The regulation will be revised using some inputs from market players. The would-be revised regulation is on bourse No. II-H on requirement and securities trade in margin transaction and short selling transaction and No. III-I on margin and short selling membership.

"We have not known yet the suspension until when, but the most likelihood is that it is impossibly enacted by January," said Securities Institution and Transaction Bureau Chief of Bapepam-LK Nurhaida to press this week.

He said as long as the proposal is not submitted yet in the IDX regulation revision , the bourse regulation No. II-H recently deliberated mid this year will be effectively enacted.

APEI recommended all stocks listed in the LQ45 index could become stocks with margin transaction facility. The recommendation also urged Bapepam regulation concept not to refer to individual stocks given that the margin is more easily given to some basket stocks.

IDX and market players requested for permit to Bapepam noting that the regulation refers to the regulation of the capital market authority No.V.D.6 on the securities transaction settlement cost by the securities company to the customer.

The enactment of the revised regulation was formerly designed for early next year implementation. Now, some 67 bourse members (AB) from the 117 ABs providing margin facility.

Nurhadia said the prolonging target was inevitable due to the absence of detail discussion of the margin regulation revision by the capital market authority and IDX. The lateness happened due to the short time given up to 2009.

Coordinator of Chairman Committee of APEI Lily Widjaja said the organization accepted the condition and said the full authority of the enactment is on Bapepam hand.

"We at least has addressed the recommendation. It is another problem whether or not the sooner or later implementation," she said. (Bisnis/21)