Presentation of

 For the last 3 years (2000 – 2002), Global Market Cap were down 13%, 19%, and 17,9% 1 st Phenomenon

 Most developed market are at “The Ten Last Performers” in term of general index performances 2 nd Phenomenon

 Most emerging markets are at “The Ten Best Performers” in term of general index performances 3 rd Phenomenon

 Most emerging markets were at “The Ten Strongest Market Cap Percentage Growth” 4 th Phenomenon

The JSX Source of Revenue

Infrastructure Development  Fully implementation of scripless trading & book entry settlement system  T+3 settlement cycle  Operation of a new Jakarta Automated Trading System for Remote Trading (JATS-RT)  Implementation of Auto Rejection System to enhance JSX monitoring capacities  Building an electronic linkage with BAPEPAM to improve efficiency in reporting system  Establishment of a Network Command Center as a center for services, monitoring, and operations of remote trading  Developing Executive Alert System for Security Market Automated Research Training and Surveillance (SMARTS)

Preserving Market Integrity  More stringent listing criteria  Promote the implementation of GCG Principles to all listed companies:  98% has had Independent Commissioners  80% has established audit committee  Enhancing surveillance activities  Make more constructive works and cordination with constituents  Investor education

The JSX Daily Trading Vol & Value, Composite Price Index Daily average trading volume increased 16% Daily average trading value increased 24% The JSX Composite Price Index closed higher by 8% So did the transaction-related incomes The JSX Transaction-related Incomes 22.79%

The JSX Mission  Moving towards a demutualized exchange  Establishing JSX as a Center of Excellence and Competence Institution  Delivering good quality products and services  Building JSX as a more active and responsive institution that is able to cope with global challenges through its market reorientation

 Hingga Juni 2003, kinerja pasar ekuitas global bergerak ke arah yg cukup positif  Bursa di kawasan Asia Pasifik menjadi “The Best Performer in June” Market Aktualita Time ZoneAverage Performance North America1.4% South America-0.1% Europe2.6% Asia - Pacific6.0% AVERAGE2.5%

AGENDA  Do we need a reform …?  Fundamental problems encountered …  How to deal with …  The new regulatory regime in the Indonesian financial services industry …

 Bursa-bursa negara maju tetap mendominasi prosentase global market cap Fenomena Global (6)

The JSX Source of Revenue

The Objectives  To be well financed to compete globally and invest in both technology and human capital  Product development and institutional building  To enable SX management to take actions that are in the best interest of its organization and its constituents  to adapt and respond quickly to market forces