History of Indonesia Stock Exchange

The capital market in Indonesia has actually exist long before the Independence of Indonesia. The first stock exchange in Indonesia was established on 1912 in Batavia during the Dutch colonial era. At that time, the Exchange was established for the interest of the Dutch East Indies (VOC).

During those era, the capital market grew gradually, and even became inactive for a period of time due to various conditions, such as the World War I and II, power transition from the Dutch government to Indonesian government, etc.

Indonesian government reactivated its capital market in 1977, and it grew rapidly ever since, along with the support of incentives and regulations issued by the government.

Below is the brief history of Indonesia Stock Exchange:

December 14, 1912	The first Stock Exchange in Indonesia was built in Batavia (currently known as Jakarta) by the Dutch East Indies.
1914 – 1918	The Batavia Stock Exchange was closed during the World War I.
1925 – 1942	The Batavia Stock Exchange was re-opened, and new stock exchanges were established in Semarang and Surabaya.
Early 1939	Due to the political issues on World War II, the stock exchanges in Semarang and Surabaya were closed.
1942 – 1952	Jakarta Stock Exchange (JSX) was re-closed during the World War II.
1952	JSX was re-activated by the issue of the Capital Market Emergency Regulations 1952 by the Minister of Justice of Indonesia (Prof. Dr. Sumitro Djojohadikusumo). The only product traded in the Exchange at that time was the Indonesian Government bond (1950).
1956	Due to the nationalism programs on Dutch’s companies by the Indonesian Government, JSX became stagnant.
1956 – 1977	During this period, JSX became inactive.
August 10, 1977	The Exchange was re-activated by the President Soeharto. It was supervised under the management of the Capital Market Supervisory Agency (Badan Pengawas Pasar Modal, or BAPEPAM). The re-activation of the capital market was also marked by the go public of PT Semen Cibinong as the first issuer listed in the JSX. July 10th is celebrated as the anniversary of the Capital Market in Indonesia.
1977 – 1987	The activity of stock trading in JSX was dull. There were only 24 listed companies in JSX. Most people prefered to invest their money in Banks rather than the Capital Market.
1987	PAKDES 87 (December Package 1987) was issued to give ways for companies to go public and foreign investors to invest their money in Indonesia.
1988 – 1990	Deregulations packages in Banking and Capital Market were made. JSX welcomed foreign investors. The activities of JSX were improving.
June 2,1988	Indonesia Pararel Bourse started to operate and managed by the Securities and Money Trading Organization. It consisted of brokers and dealers.
December 1988	The government issued PAKDES 88 to give ways for companies to go public, and some other regulations that brought positive impacts on the capital market growth were made.
June 16, 1989	Surabaya Stock Exchange started to operate and was managed by the Surabaya Stock Exchange Inc.
July 13, 1992	JSX was privatized, and as a result, the functions of BAPEPAM changed to become the Capital Market Supervisory Agency (BAPEPAM-LK). This date is celebrated as the anniversary of Jakarta Stock Exchange.
May 22, 1995	JSX introduced its computerized Jakarta Automatic Trading System (JATS).
November 10, 1995	The Government of Indonesia issued Regulations No. 8 year 1995 on capital market. This regulation was effective on January 1996.
1995	Indonesia Pararel Bourse was merged into Surabaya Stock Exchange.
2000	Scripless trading system was introduced for the first time in Indonesia’s Capital Market.
2002	JSX started to implement the remote trading system.
2007	Surabaya Stock Exchange was merged into Jakarta Stock Exchange. As a result, JSX changed its name into the Indonesia Stock Exchange.