Jakarta. Indonesia's Financial Services Authority, or OJK, has approved Inarno Djajadi as new president director of the Indonesia Stock Exchange.
The appointment will be effective after the bourse's general shareholders meeting on June 29. Inarno, who will serve during the 2018-21 period, replaces Tito Sulistyo who was holding in office in 2015-18.
Issuers, investors and analysts have high expectations toward the new Indonesia Stock Exchange (IDX) leadership.
"It [the stock exchange] needs more derivative products and exchange traded funds [ETF] to deepen the capital market. So far, derivative trading on IDX has not been doing too well," said Investa Saran Mandiri director Hans Kwee.
Hans said the new IDX director should begin to think of a new regulation that would allow securities companies or third parties to act as liquidity buffers on the market to prevent issuers, who have just held an initial public offering, from seeing their stock prices fall steeply.
"If our capital market is good and growing, then entrepreneurs and investors will have the confidence to make IDX the place to raise funds or to invest," he said.
Isakayoga, director of the Indonesian Issuers Association (AEI) said the bourse needs to reduce its annual listing fees.
"Do not calculate the annual fee based on market capitalization, but based on total assets. Today, the higher the stock price, the higher the listing fee will be, as if the issuer was penalized for it. Instead, he should be rewarded," said Isakayoga.
According to the Indonesian Securities Analysts Association (AAEI), which members serve more than 1.3 million individual investors, the new IDX director should focus on good corporate governance.
"Issuers on IDX need to be more transparent, especially to analysts. There are still many companies that are difficult to get in touch with," said AAEI chairman Edwin Sebayang.
Inarno has extensive expertise in capital markets. The Gadjah Mada University graduate began his career as a treasurer at local lender Uppindo Bank in 1989. Since then, his career has been centered on brokerage firms and the stock market. In 1991-97, he was serving as director of Aspac Upindo Sekuritas, after which he moved to Mitra Duta Sekuritas, Widari Securities, Madani Securities, Maybank Kim Eng Securities and CIMB Sekuritas Indonesia. He served as chief executive of the Stock Market Clearing House (KPEI) in 2003-09.
Aside from Inarno, OJK also appointed six other directors.
President director: Inarno Djajadi
Listing director: IGD N. Yetna Setia
Trade director: Laksono Widito Widodo
Monitoring transaction director: Kristian Sihar Manullang
IT director: Fithro Hadi
Human resources and finance director: Risa Effennita Rustam
Development director: Hasan Fawzi