Presentation of

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

1st Phenomenon

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

2nd Phenomenon

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

3rd Phenomenon

Most emerging markets were at “The Ten Strongest Market Cap Percentage Growth”

4th Phenomenon

The JSX Source of Revenue

44.5

26.7

37

22.2

29

17.6

05

1015202530354045

1999 2000 2001

Transaction Fees Clearing Fees Listing Fees Others

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

603

396.4 392

698.8

493

424.9

0

100

200

300

400

500

600

700

2001 2002

Trading Volume

Trading Value

CP Index

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

29

17.6

35.7

21.4

0

5

10

15

20

25

30

35

40

2001 2002

Transaction Fees

Clearing Fees

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 Zone Average Performance

North America 1.4%

South America -0.1%

Europe 2.6%

Asia - Pacific 6.0%

AVERAGE 2.5%

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)

44.5

26.7

37

22.2

29

17.6

05

1015202530354045

1999 2000 2001

Transaction Fees Clearing Fees Listing Fees Others

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