T

he Financial Services Authority (OJK) has named Tito Sulistyo, vice president director with toll road company Citra Marga Nusaphala Persada (CMNP), as president director of the Indonesia Stock Exchange (IDX) after a month-long process.

Tito, who was allegedly not a strong candidate in the selection, will replace Ito Warsito whose second three-year term will end later this month. Tito'€™s definite appointment is pending approval by a shareholders meeting scheduled on June 25.

OJK commissioner for stock market supervision Nurhaida confirmed the financial regulator had named Tito to lead the IDX for the next three years, saying that Tito had long-term experience in the stock market.

This makes him suitable for the position, she said.

'€œOther candidates are also good but we choose the best visionary among the best. There'€™s no objection so far because the decision is made based on the market'€™s interest,'€ Nurhaida said.

The OJK, she said, had also named six other candidates to fill in the bourse'€™s new board of directors to be presided over by Tito, after a series of administrative and fit-and-proper tests lasting since early May to early June.

'€œWe called the candidates and briefed them, so that they will synchronize their visions and missions, but we believe they can work together as a solid team on their professionalism.'€

Tito'€™s name surfaced as the new president director candidate after beating two other hopefuls that made it into the fit-and-proper test, Mandiri Sekuritas president director Abiprayadi Riyanto and incumbent IDX trading and membership director Samsul Hidayat.

The two names were mostly mentioned by stock market players as strong contenders to chair the position.

Samsul proceeded to enter the board of directors for the second time to become corporate listing director for the next three-year term.

Business and stock market players said that they welcomed OJK'€™s decision, saying that they hoped the new president director would work on easing regulations that encumbered brokers and listing firms.

Indonesian Publicly Listed Companies Association (AEI) executive director Isaka Yoga said he positively welcomed Tito especially for his broad experience. He, however, questioned the OJK'€™s authority to name the board of directors, unlike the previous selection when the financial regulator only conducted fit-and-proper tests.

'€œWe hope Pak Tito will be able to meet the expectations of the listed companies to cut annual listing fees and base the fees more on paid-up capital than on market capitalization,'€ Isaka told The Jakarta Post over the phone.

Included in Tito'€™s resume is commissioner and founder of the Jakarta Stock Exchange (JSX) from 1992 to 1994 and at the now-inactive Surabaya Stock Exchange in 1995-1998, managing director of then state-owned television station Cipta Televisi Pendidikan Indonesia (TPI) and chief executive officer at Media Nusantara Citra Networks in 2004-2007.

Indonesian Securities Companies Association (APEI) chairman Susi Melina also said that Tito'€™s experience made her association warmly welcome the candidate and that she hoped he would work on revoking a number on unfavorable regulations, including the regulation effective last year that cut a price fraction for every transaction that lower brokers'€™ profit margins.