HUGE FOREIGN CAPITAL FLOW INTO RI'S CAPITAL MARKET EXPECTED

Jakarta, Dec 30 (ANTARA) - Huge amounts of foreign capital are expected to flow into Indonesia's capital market in 2010, chairman of the Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) Fuad Rachmany said here on Wednesday.
He said Bapepam-LK would therefore continue to improve institutions related to the capital market and also encourage national companies to go public.

Foreign capital flow into Indonesia would increase in 2010 because demand for industrial investment in the capital market would rise significantly, he said.

The prices of shares in the stock exchange market would automatically increase also, especially for good quality stocks, he said.

To anticipate the increased foreign capital flow, Bapepam-LK would take corrective measures in capital market institutions and encourage national companies to enter the stock market, Rachmany said.
In addition, Bapepam-LK would also continue to issue regulations that allow any interested company to enter the stock market.

Therefore, Bapepam-LK had revised some of its regulations to attract companies, such as for secondary public offering (SPO) without early preemptive rights (HMETD) which had increased from five to ten percent.
"This is our breakthrough and it has been greeted positively by the AEI (Indonesian Issuers Association," he said.

In addition, Bapepam-LK had simplified its regulations on initial public offerings (IPOs) as mentioned in its revised regulation No IX.A.2.

However, issuers were required to remain transparent as a public company and to hold shareholders' general meetings (AGM) as the highest decision-makers.