JSX - Jakarta Stock Exchange

Based in the city of Jakarta in Indonesia, the Jakarta Stock Exchange (JSX) was originally opened in 1912 under the old Dutch colonial government. It was closed and opened several times during the two World Wars and was eventually re-opened successfully in 1977 by the Capital Market Executive Agency who worked under the direction of the country’s Ministry of Finance. Today the JSX is also known locally as the Bursa Efek Jakarta (BEJ) and since it has become a firmly established part of Indonesia’s economy, trading activity and market capitalization have become common aspects of the country’s financial markets and private sector. In 1992, the JSX was privatized and in 1995 JSX launched the Jakarta Automated Trading System (JATS).

The Indonesian economy is mainly market-based and there are currently more than 165 state-owned enterprises across the country making the government a major player in the local economy. The government also regulates the prices of a number of basic goods such as electricity, fuel and rice. The large role that the Indonesian government currently plays in the local economy is largely due to the financial and economic crises that hit the country in 1997. The government’s subsequent involvement and intervention resulted in a number of takeovers of both private sector and corporate assets. These takeovers were done through the acquisition of non-performing bank loans and debt restructuring – making them completely legal albeit somewhat unfortunate for previous business owners.

Indonesia’s currency is the Rupiah and the country’s major trade organizations are APEC, ASEAN, WTO and OPEC. Foreign investors will be interested to know that the country has a GDP growth rate that exceeds 5% which makes them a potentially profitable investment. The country’s main sectors are currently agriculture, industry and services. In 2004, agriculture constituted 16.6% of the country’s GDP while industry was accountable for 43.6% and services for 39.9%. Unemployment is not that high as the country currently has only a 10.3% unemployment rate and, while poverty has probably decreased in recent years, it is unlikely that it has been completely eradicated. The country enjoys a good amount of export, exporting oil, gas, plywood, rubber and textiles to countries such as Japan, the US, Singapore, South Korea and China. They also import goods such as machinery, equipment, chemicals, food and fuel.

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