Details of possible candidates for the top jobs at the Indonesia Stock Exchange (IDX) have already been circulating in the financial market three months before the tenure of the current management expires.
Several stock brokers told The Jakarta Post there were three different packages of candidates proposed by capital market stakeholders.
The first package, believed to be backed up by the government, includes Bahana Securities president director Ito Warsito, Indonesia Stock Market Clearing House (KPEI) president director Inarno Djajadi, and IDX director Justitia Tripurwasani.
Senior IDX executives are proposed spearheaded by internal investigation division head Widodo and head of marketing division Wan Wei Yiong is included in the second package, which is primarily proposed by IDX employees.
The third package, whose candidates have been put forward by securities companies, includes Merril Lynch Securities Indonesia president director Lily Widjaya, who is also the chairwoman of the Association of Indonesian Securities Companies (APEI), and current IDX director T. Guntur Pasaribu.
Guntur along with Justitia are the only IDX directors who can seek another term in the management of the bourse.
A new regulation issued by the Capital Market and Financial Institution Agency (Bapepam-LK) has limited the tenure for IDX directors to not more than two periods. One period consists of three years.
Candidates are also not allowed to run for the jobs if they have served three periods in other regulatory organizations, including in KPEI and KSEI (the Indonesia Central Securities Depository).
Due to these regulations, the current IDX president director Erry Firmansyah is no longer eligible to be hold the post again.
Erry, the older brother of Rinaldi Firmansyah, the president director of publicly listed state telecommunication company PT Telkom, has been in the job since 2002.
Prior to that , he was KSEI president director from 1998 until 2002.
Under the regulation, the packages of candidates have to be submitted to Bapepam for legal approval, which includes a series of examinations dubbed as “fit and proper tests”.
After the watchdog clears the candidates, securities houses will later pick from one of the packages during the upcoming IDX shareholder meeting in June.
However, according to the existing procedure, only securities houses managing at least 10 percent of the total transactions in the market are eligible to take part in the process of selecting the candidates.
Meanwhile, stock market analyst Edwin Sinaga said the market needed a new leader that not only had experience and integrity but also a commitment to prioritize the industry above everything.
“Even though we have seen a lot of progress, we cannot close our eyes to the reality that the IDX has been subject to interference by a lot of vested interests that have brought the industry to a standstill,” he said.
Edwin believed the conditions had worsened after the October stock market collapse, which was followed by a number of difficult stock market cases, including those involved the politically wired Bakrie family’s companies.
The way IDX handles the capital market cases and related problems has led to criticism from industry players that the management of the bourse has showed lack of responsiveness in resolving problems as well as failure to anticipate them.
“I hope there will be fundamental changes in the way the IDX is run.” said Edwin.