Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Capital Markets  >> RI still reluctant to join ASEAN Trading Link
NEW UPDATES Asean Affairs  16 March  2015  

RI still reluctant to join ASEAN Trading Link

The Indonesia Stock Exchange (IDX) is still reluctant to join the ASEAN Trading Link, a cross-border trading gateway among ASEAN members, because of the lack of a dispute-settlement system, a senior official with the capital market watchdog has said.

The Financial Services Authority’s (OJK) commissioner for capital market supervision Nurhaida said that the country’s bourse would only join the trading link — which currently consists of Singapore, Thailand and Malaysia — only if several important issues were first addressed.

The issues, Nurhaida said, included how the system would handle disputes, as well as how to deal with the wide gaps between stock exchanges in the region.

“We are ready to join the trading link; our market is ready to be integrated. But we are still assessing whether or not this system is favorable for our stock exchange,” she explained.

Nurhaida further said that stock exchanges across ASEAN differed widely not only in terms of market size but also in the trading platforms they used. Some ASEAN members did not even have stock markets, while other bourses had very few companies listed, she added.

Cambodia’s stock exchange, for instance, has only two new listed firms despite having operated for three years, while Myanmar is still working on setting up its capital market and Brunei Darussalam is trying to initiate one.

“The trading link has no mandatory deadline. It depends on the preparedness of each country’s stock market. We’re in no hurry to join,” she said.

ASEAN Trading Link was launched in September 2012 as a way for securities brokers to offer investors easier cross-border trade between ASEAN member nations.

An integrated capital market is an important part of ASEAN’s plan to establish the ASEAN economic community (AEC), which is to be rolled out by the end of this year. So far, however, only three countries — whose stock markets are deemed the most mature in the region — have joined the initiative.

CIMB group chairman Dato’ Sri Nazir Razak was recently quoted by Malaysia’s The Star as saying that Indonesia would be a vital component in the AEC.

“The world acknowledges the importance of Indonesia by its inclusion in G20. Every ASEAN initiative must include Indonesia, or at least have a timeline for Indonesia’s inclusion. And therein lies one of my major concerns for the AEC,” he said.

The banker added that Indonesia’s reluctance to join the ASEAN Trading Link was telling.

“It does provide an alternative means for investors to trade across exchanges. But this is already available through regional brokers and inter-broker transactions. There is a need to understand Indonesia’s reluctance, what it means on the broader level in terms of its real commitment to AEC and what can be done about it,” argued Nazir.

One of the Indonesia’s main concerns, Nurhaida previously said, was the absence of regulations on foreign firms making initial public offerings in the IDX.

The OJK and IDX have been working on preparing the latter to compete with its regional peers ahead of the AEC, including introducing regulations helping local firms to go public, setting up good corporate governance blueprints and rolling out an extensible business reporting language-based financial reporting system.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           March  16 , 2015 Subsribe Now !
• Viet Nam's super wealthy likely to get richer Subcribe: Asean Affairs Global Magazine
• RI still reluctant to join ASEAN Trading Link
• Philippine Muslim rebels warn trust in government eroded
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Malaysia’s external debt manageable, says Finance Ministry
•Thai firm latest to offer lease financing
Asean Analysis                    March 6, 2015
• Asean Analysis March 6, 2015
Washington Prepares to Welcome New Indonesian President, with Some Caution
Advertise Your Brand

Asean Stock Watch  March 13,  2015
• Asean Stock Watch-March 13, 2015
The Biweekly Update
• The Biweekly Update March 6, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand