Indonesia Index

The Indonesia Stock Exchange was created in 2007 after the merger of the Surabaya Stock Exchange and the Jakarta Stock Exchange. The Indonesia Stock Exchange has nearly 400 companies listed with a market capitalization in excess of $212 billion.

The exchange opened in 1912 under the colonial Dutch government. After numerous stops and starts throughout World War I and World War II the exchanged opened for good in 1977 under a newly created supervisory agency. Trading grew in relation to the growth of the financial markets and private sector in Indonesia, including a major bull run in 1990.

The exchange was privatized in 1992 and in 1995 launched an automated trading system. One of the worst acts of terrorism in the area occurred in Sept. 2000, when a car bomb exploded in the basement of the building. This set off a chain of explosions that caused many cars to catch fire and killed many drivers waiting by their employer's cars. Two men were sentenced a year later for planning the attack and given a 20-year jail term.

The most recognized index is the LQ 45, a list of stocks chosen for their high liquidity and market capitalization. The index is reviewed every six months for possible changes. The current members of the index are: Adara Energy, AKR Corporindo, Aneka Tambang, Astra Agro Lestari, Astra International, Bakrie Sumatra Plantations, Bank Central Asia, Bank CIMB Niaga, Bank Danamon Indonesia, Bank International Indonesia, Bank Mandiri, Bank Negara Indonesia, Bank Pan Indonesia, Bank Rakyat Indonesia, Barito Pacific, Bayan Resources, Berlian Laju Tanker, Bisi International, Charoen Pokphand Indonesia, Ciputra Development, Elnusa, Holcim Indonesia, Indah Kiat Pulp and Paper, Indika Energy, Indo Tambangraya Megah, Indocement TunggaiPrakarsa, Indofood Suses Makmu, Indosat, International Nickel Indonesia, Jasa Marga, Kalbe Farma, Lippo Karawaci, Medco Energi International, Mitra Rajasa, Perusahaan Gas Negara, PP London Sumatera, Sampoerna Agro, Semen Gresik, Tambang Baturbara Bukit Asam, Telekomunikasi Indonesia, Tima, Tunas New Lampung, Unilever Indonesia, United Tractors, and Wijaya Karya.

Indonesia Index Articles - by BetterTrades