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Indonesia to unveil new measures to boost capital market

Indonesia to unveil new measures to boost capital market

Indonesia will unveil new measures soon to boost liquidity in the stock market, and is working with Malaysia to allow dual listings of each other's exchange, Trade Minister Mari Pangestu said Monday.
The government is finalizing the capital market development package, which will include tax incentives as well as new supervisory laws especially on money laundering, she said at a business conference here.
"It's about strengthening the capital market, increasing liquidity and stability including supervision, and new tax incentives to make it easier for companies to list," she told reporters later.
"There is a lot of liquidity out there," she added. "We need to increase supply of good investment."
Sixteen state-owned enterprises in Indonesia are likely to be listed this year once they obtained parliament's approval, she said.
Indonesia and Malaysia plan to allow dual listings on each other's stock exchange but regulators are still working on harmonizing listing rules, she said.
Earlier, President Susilo Bambang Yudhoyono told the conference that Indonesia's economy is expected to grow 6.3 percent this year, with inflation to be capped below 7 percent.
He said the government was reviewing its policy on foreign investment in Indonesian companies but pledged there would be "no dramatic, abrupt changes."
He was responding to a question by Malaysian firms on whether the limit on foreign equity ownership in Indonesia's telecommunications sector would be reduced.
Pangestu said foreigners are allowed to own up to 95 percent of Indonesia's telecoms firms at present but confirmed this is under review under new proposed investment laws.
The review is aimed at protecting national interest and to update current regulations, which have been in place since 1994 and are becoming inconsistent with the country's needs, she said.
Once completed, the new laws will spell out clearly which sectors are opened to foreign investors and what are the conditions attached, she said.
"It's more transparency, it has greater legal certainty because it's based on a law ... this is standard practice, best practices for all countries. The criteria really is on national interest," she added.
She didn't say when these laws will be introduced nor give further details.


Updated : 2021-10-19 04:48 GMT+08:00