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Jakarta Post

Bourse establishes securities financing company

  • Anton Hermansyah
    Anton Hermansyah

    The Jakarta Post

Jakarta   /   Wed, December 28, 2016   /  06:17 am
Bourse establishes securities financing company Indonesia Stock Exchange (IDX) president director Tito Sulistio answers questions regarding PT Pendanaan Efek Indonesia at the IDX building on Dec. 27. (JP/Anton Hermansyah)

The Indonesia Stock Exchange (IDX) along with the Indonesian Stock Market Clearing House (KPEI) and Indonesian Central Securities Depository (KSEI) have established securities financing company PT Pendanaan Efek Indonesia, which will begin its operations next year.

IDX president director Tito Sulistio said the lender would give loans of up to Rp 100 billion (US$7.4 million) to securities. Securities companies could then lend the funds to their customers in the form of margin trading.

"But the loan is only for securities, which have a net-adjusted working capital higher than Rp 250 billion," he said at the IDX building in Jakarta on Tuesday, adding that there were 30 securities companies that met the requirements.

(Read also: Indonesia's IDX to ease margin trading rule, eyeing 25% transaction hike)

He said with help of the loan, margin transactions would increase next year. Overall it could increase IDX daily transactions, which currently were the second highest in Southeast Asia, only behind Thailand. 

"Other regional markets like Japan, Taiwan and Thailand already have securities financing companies, where in Japan loans are even unlimited," he said.

Tito added that the three institutions have forked out Rp 250 billion capital for the lender, which in future might raise to Rp 1 trillion. Two directors and one commissioner have been nominated and are awaiting for approval from the Financial Service Authority (OJK). (evi)

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