TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
IDX ready to buy back shares at premium price
Buy back: Indonesia Stock Exchange (IDX) new president director Tito Sulistio (left) poses with former IDX president director Ito Warsito after the annual general meeting that appointed him as Ito's successor, on June 15, 2015
Change Size
Buy back: Indonesia Stock Exchange (IDX) new president director Tito Sulistio (left) poses with former IDX president director Ito Warsito after the annual general meeting that appointed him as Ito's successor, on June 15, 2015.To tackle the excessive number of brokerage houses, 115 firms, the IDX plans to pay premium prices for its shares currently held by brokerages as IDX members as well as shareholders. (thejakartapost.com) (IDX) new president director Tito Sulistio (left) poses with former IDX president director Ito Warsito after the annual general meeting that appointed him as Ito's successor, on June 15, 2015.To tackle the excessive number of brokerage houses, 115 firms, the IDX plans to pay premium prices for its shares currently held by brokerages as IDX members as well as shareholders. (thejakartapost.com)
B
span class="inline inline-center">Buy back: Indonesia Stock Exchange (IDX) new president director Tito Sulistio (left) poses with former IDX president director Ito Warsito after the annual general meeting that appointed him as Ito's successor, on June 15, 2015. To tackle the excessive number of brokerage houses, 115 firms, the IDX plans to pay premium prices for its shares currently held by brokerages as IDX members as well as shareholders. (thejakartapost.com)
Indonesia Stock Exchange (IDX) has prepared to buy back its shares currently owned by securities brokerage houses'as the bourse members'at a premium price, in an effort to reduce the number of securities firms in Indonesia.
Indonesia needed a stronger brokerage industry with a limited number of players, as there were too many securities firms with 115 companies, which created unhealthy competition in stock-dealing services amid limited stock transactions, said the IDX director.
"The buyback will be an incentive for them. If we do it at the nominal value, securities companies will not be attracted. Therefore, IDX will buy at a higher price," IDX director of surveillance and compliance, Hamdi Hassyarbaini, said in Jakarta on Tuesday.
The bourse, he continued, would allocate around Rp 7 billion ' Rp 10 billion for the buyback program, arguing that it was safe for IDX to conduct the program.
"Currently, IDX's book value is around Rp 18 billion. Even though the buyback value is high, almost half of the IDX value, the benefit will come back to us in the form of increasing transactions," Hamdi said. (ags)
