Two Issues Hamper Indonesian Capital Market in ASEAN

TEMPO.CO, Jakarta - Financial Service Authority's (OJK) commissioner for capital market supervision, Nurhaida, said the two main issues that should be addressed by the Indonesian capital market before entering ASEAN Economic Community lie on stocks and trust funds.

In ASEAN stock exchange, adjustment is still being made in terms of dispute settlement.

"For example, if an Indonesian broker has a problem in making transaction overseas, how it would be resolved is still being discussed," Nurhaida said on Thursday, April 17, 2014, at OJK office.

Singapore, Malaysia and Thailand had signed am MoU regarding trust fund. Nurhaida said Indonesia has yet been included in the agreement because it is still adjusting with the requirements. One of the requirements is related to prospectus that needs to be announced publicly and must be signed by OJK's auditor. By the regulation, prospectus issued by external parties will not be considered as valid.

Nurhaida said the preparation in welcoming ASEAN Economic Community has been undertaken for a while. Currently, five out of 10 ASEAN countries are considered as developed countries, while others are considered less developed countries.

"Indonesia, Singapore, Malaysia, Thailand and Philippine belong to the first category and have sit in many discussions," Nurhaida said.

FAIZ NASHRILLAH