Indonesia potentially cancels Asean Linkage participation

as published in Bisnis Indonesia daily newspaper

Friday, 22/01/2010 00:00 WIB

Indonesia potentially cancels Asean Linkage participation

JAKARTA: Capital Market and Finance Institution Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan/Bapepam-LK) opens chance to delay or even cancel the participation of Indonesia in the Asean Stock Linkage and Asean Economic Community.

"If the result of our studies only gives less benefit for Indonesia, we must not follow them," said Chief of Bapepam-LK Ahmad Fuad Rahmany to Bisnis yesterday.

The already signed deal made by Bapepam-LK and the Asean's bourse authority and capital market community agrees the implementation of Asean Linkage by 2013 and Asean Economic Community by 2015.

The domestic capital market players and the authority have made preparation so it could barely be deemed that the discourse for schedule postponement or cancellation was due to the lacking of preparation.

This issue was once discussed in visit of the several Asean bourse authority this week.

The authority will not decide to take part in a community if it does not benefit Indonesia.

"We are an enormous country with the largest potential among the other countries (of the community). If there will be no benefit for us, the government could refute the plan as stipulated by the agreement."

But Fuad could not provide the profit and loss details if Indonesia involves in the two agreements here.

Information Technology Director of IDX Adikin Basirun, who responsible for the Asean cooperation, said there is clause referring to the preparedness of the members in the Asean Linkage. That is also stipulated in the clause of the Asean Economic Community.

"But if market is not ready, and not well prepared from now on, when will it be ready? We always try to increase the competitiveness of market players and authority higher."

So far Indonesia is still lagged behind by some initiatives if compared to the Asean or Asia countries. So, the capital market and bourse authorities have started to apply some more rigid rules and restrict the quality of market players.

Committee Coordinator of Chairman of the Indonesian Securities Company Association (Asosiasi Perusahaan Efek Indonesia/APEI) Lily Widjaja agreed with the analysis and intention of Fuad Rahmany.

The authority and capital market players shold consider the preparedness and condition prior to join the free trade area. "It should consider the benefit and weakness prior to the decision making." (Bisnis/iaa)