Indonesia's two bourses to merge
The Jakarta and Surabaya Stock Exchanges are planning to merge in a bid to create a bigger and more competitive bourse.
By Agencies |
JAKARTA: Indonesia's two bourses, the Jakarta and Surabaya Stock Exchanges, are planning to merge in a bid to create a bigger and more competitive bourse, officials said on Monday.
Surabaya exchange president Bastian Purnama said that the two bourses, which share the same owner, are to hold shareholder meetings on October 30 to approve the merger.
He said the new bourse will use the existing facilities of the Jakarta Stock Exchange and will likely start operations on December 1, by when it expects to have received approval for the merger from the justice ministry.
"The merger will create synergy... We can focus our strength in competing with other exchanges rather than compete with each other," Jakarta bourse president Erry Firmansyah said.
Purnama said the new bourse could offer more products than those now traded on the Jakarta exchange, such as derivatives or real estate investment trusts.
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He said most investors currently prefer trading stocks on the Jakarta bourse while trading in Surabaya is mainly over-the-counter transactions for both stocks and bonds.Download
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