Jakarta Stock Exchange

Jakarta Stock Exchange
source
Name	Jakarta Stock Exchange
Native name	Bursa Efek Jakarta
Type	Stock exchange
Location	Jakarta, Indonesia
Founded	1912; re-established 1977
Owner	Indonesia Stock Exchange
Currency	Indonesian rupiah (IDR)
Indices	IDX Composite

Jakarta Stock Exchange. The Jakarta Stock Exchange, originally established during the Dutch East Indies era, served as the primary securities market in Indonesia for decades before its merger. It played a central role in the development of the nation's capital market, facilitating investment and corporate growth. Its operations were ultimately integrated into the unified Indonesia Stock Exchange, marking a significant evolution in the country's financial infrastructure.

History

The exchange's origins trace back to 1912 with the founding of the Vereniging voor den Effectenhandel in Batavia under colonial rule. This early market ceased operations following the Japanese occupation of the Dutch East Indies and the subsequent Indonesian National Revolution. The modern institution was re-established by government decree in 1977, with trading resuming in 1978 under the supervision of the Capital Market Supervisory Agency. A major consolidation occurred in 2007 when it merged with the Surabaya Stock Exchange, forming the present-day Indonesia Stock Exchange, a move championed by the Financial Services Authority (Indonesia).

Operations and trading

Trading was conducted through an automated electronic system, with sessions held on business days in the Asian time zone. The primary trading currency was the Indonesian rupiah, and all transactions were settled through the Indonesian Central Securities Depository. The market operated under a T+2 settlement cycle and employed a continuous order-driven trading mechanism. Oversight of these processes was maintained by the Indonesia Stock Exchange and regulated by the Financial Services Authority (Indonesia), ensuring alignment with international standards set by organizations like the International Organization of Securities Commissions.

Listed companies

The exchange hosted a diverse array of domestic corporations, spanning major sectors such as financial services, natural resources, and consumer goods. Prominent listings included large state-owned enterprises like Bank Mandiri and Telekomunikasi Indonesia, as well as major private conglomerates such as Astra International and Unilever Indonesia. The presence of these firms attracted significant attention from both local investors and international institutions like the World Bank and Morgan Stanley. Listing requirements were designed to meet the regulatory standards of the Financial Services Authority (Indonesia).

Market indices

The benchmark indicator was the Jakarta Composite Index, which tracked the price performance of all listed common stock. Sector-specific indices were also published, including the LQ45 index for highly liquid blue chip stocks and the Jakarta Islamic Index for Sharia-compliant securities. These indices were widely monitored by analysts at institutions like JP Morgan Chase and Goldman Sachs and served as underlying assets for derivative products. The calculation methodology was maintained by the Indonesia Stock Exchange.

Regulation and governance

The market regulator was the Financial Services Authority (Indonesia), an independent agency established by law. This body was responsible for licensing broker-dealers, approving public offerings, and enforcing rules against insider trading and market manipulation. The exchange's own governance and rule-making were overseen by the Board of Commissioners of the Indonesia Stock Exchange. The regulatory framework was influenced by principles from the International Organization of Securities Commissions and underwent reforms following the 1997 Asian financial crisis.

Category:Stock exchanges in Indonesia Category:Economy of Jakarta Category:Financial services companies established in 1912