May 7, 2019 / 10:00 AM / 4 months ago

Indonesia to cap foreign ownership in electronic trading platforms

JAKARTA, May 7 (Reuters) - Indonesia will limit foreign ownership of providers of electronic trading platforms for foreign exchange and money markets, a central bank official said on Tuesday, as part of its broader plans to improve market management.

The new rules, which come into effect on Oct. 31, set a maximum foreign ownership of 49 percent in any company that provides electronic trading platforms for such markets, said Agusman, executive director of financial market deepening at Bank Indonesia (BI).

The company must operate in the form of a limited liability entity, maintaining a minimum equity of 10 billion rupiah ($700,000), he told a news briefing.

A minimum paid-up capital of 30 billion rupiah is also required upon establishment of the company, added Agusman, who uses one name.

For existing trading platform providers, BI will allow a three-year transition period to comply, he said.

These providers must have a safe and reliable infrastructure, operate with good governance and comply with other rules regarding safety of transaction data.

Thomson Reuters, the parent company of Reuters News, owns a 45 percent stake in Refinitiv, which is among several providers of electronic trading platforms in Indonesia. ($1 = 14,285.0000 rupiah) (Reporting by Maikel Jefriando and Gayatri Suroyo Editing by Ed Davies and Gopakumar Warrier)

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