IDX Chief Ito Gets 2nd Term as Euro Crisis Deepens

By webadmin on 03:41 pm Jun 17, 2012
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Tito Summa Siahaan & Ivan Dasa Saputra

Ito Warsito was named chief executive of Indonesia’s stock exchange on Thursday, retaining his post for a second three-year term as a global economic slowdown undermines investment in equities.

Ito beat out Mandiri Sekuritas chief Harry Maryanto Supoyo for the bourse’s top spot. The Indonesia Stock Exchange ( IDX) confirmed his appointment in a statement published on its website.

Ito Warsito, born in Wonosobo, Central Java, faces the daunting task of boosting the local stock market amid the euro zone debt crisis and a possible slowdown in the US economy.

Massive sell-offs by foreign investors have taken their toll on Indonesia’s stock market in recent weeks and caused the rupiah to weaken despite central bank measures to prop up the currency.

Halim Susanto, president director of OSK Nusadana Securities, applauded Ito’s appointment, saying that Ito has a proven track record.

“During the first term, he implemented market-friendly policies,” Halim said.

Halim also called on the IDX’s management to “anticipate a more open, globalized market.”

Total combined market capitalization of 448 listed companies in the local exchange was valued at Rp 3,595 trillion ($385 billion) on Friday, slightly higher than Rp 3,537 trillion at the end of last year, when there were 444 listed companies.

The main stock measure, the Jakarta Composite Index, rose 0.7 percent on Friday. The benchmark, which rose 3.2 percent last year, has fallen 0.1 percent so far this year.

Ito, 50, said last year that the local bourse was seeking to almost double its market value in the next four years and become the biggest stock exchange in Southeast Asia. Market capitalization could rise to $750 billion by 2015, he said, and he has been encouraging Indonesian companies to list their shares in the local stock market.

Coal miner Toba Bara Sejahtra plans to offer 317.9 million shares, or 15 percent of its enlarged capital, on June 27-29, with trading possibly set to start on July 5.

MNC Skyvision, the largest pay TV operator, plans to sell 1.412 billion shares, or 20 percent of its enlarged capital, in an initial public offering later this year. The company will offer the shares to investors from June 29 to July 3, with a listing set for July 9.

The IDX is chaired by the chief executive and five directors. Among other appointments, Hoesen was named director of valuation; Uriep Budhi Prasetyo as director of supervision; Samsul Hidayat as finance director; Friderica Widyasari Dewi as develoment director; Adikin Basirun as director of risk management and information technology; and Hamdi Hassyarbaini as human development director.