FSA : sizeable capital market challenges

FSA : sizeable capital market challenges

Financial Services Authority ( FSA ) suggests that the challenge for the Indonesian capital market is large enough following to the enactment of " ASEAN Economic Community " ( AEC ) in 2015 .

"The challenges of the domestic stock market is much larger than this year , let alone in 2015 there is economic integration of ASEAN Economic Community , " said Chief Executive of the Indonesian Capital Market Supervisory FSA , Nurhaida on Monday night .

In welcoming " ASEAN Economic Community " , according to him , the Indonesian capital market should be able to have a " level playing field " with other ASEAN countries , such as Singapore , Thailand , and Malaysia .

Nurhaida said that the FSA along with a " Self Regulatory Organizations " ( SRO ) to continue the development of capital market infrastructure as continuous improvement efforts and integration with other sectors .

" This is in line with global developments and recommendations of the International Organization of Securities Commisions ( IOSCO ) , " he said .

Nurhaida also said that the FSA will publish a " road map " of good corporate governance ( GCG ) for all listed companies in Indonesia that Indonesian capital markets are better developed in the future .

" It 's important because it affects the perception of investors , " he said .

Nurhaida added , in addressing the challenges ahead , FSA and the Indonesia Stock Exchange ( IDX ) invites companies to utilize a closed capital market as a source of funding .

He said it will cooperate with the Chamber of Commerce and Industry ( Kadin ) to push the number of firms doing initial public offering ( IPO ) .

" In 2014 FSA has a program , which we 'll invite 100 companies that have prospects for an IPO in collaboration with the Chamber of Commerce that the number of listed companies in the stock market increases , " said Nurhaida .

He said that the FSA will conduct discussions and presentations to prospective companies about the benefits of doing an IPO for the company in its business .

" In order to achieve that goal , and BEI FSA has conducted a Focus Group Discussion ( FGD ) with the Chamber of Commerce , and three securities companies ( PT Danareksa Securities , PT Bahana Securities , PT Mandiri Securities ) to discuss the problems faced by the issuer to potential entry into the capital market , " he said .

Nurhaida suggests that the number of listed companies in Indonesia Stock Exchange is small compared to the stock market in ASEAN countries .

Data as of December 23, 2013 , a total of 484 companies listed on the Stock Exchange . While the number of companies registered in other countries such as Hong Kong as many as 1,602 issuers , issuers of Singapore 780 , and 910 Malaysian listed companies .