On the 2 July 2002, the Capital Market Supervisory Agency (BAPEPAM) of Indonesia announced the implementation of a T+3 settlement cycle, effective from 9 September 2002. At present, the Jakarta Stock Exchange settles on T +4 . “This announcement is the latest in a series of measures the Indonesian authorities have adopted since the Asia Flu crisis of 1997-98 years to improve the clearing and settlement infrastructure in Indonesia,” says Hari Chaitanya of Deutsche Bank GSS in Jakarta. An official document published by BABEPAM, itemising all of the changes is attached.
The other most important events has been the rapid progress in converting physical securities into scripless form. Presently this process is in its final phases, and is likely to be completed by the third quarter of this year. 96.3 per cent of the market is now scripless, and 342 Issuers (or 97.16 of the total number of issuers)have now converted.