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Table of Content
CAPITAL MARKET TRADING MECHANISM AND TELKOM ADS
Our common stock is listed and traded on the IDX. Our ADSs are also listed and traded on the NYSE and the LSE as ADSs, where one ADS represents 200 shares of Common Stock. Our shares are also Publicly Offered Without Listing “POWL” in
Japan.
A. The Indonesian Stock Market
Indonesia’s stock market, known as the IDX, grew out of the December 1, 2007 merger of two stock exchanges operating in two different locations in Indonesia, the Jakarta Stock Exchange in the capital and the Surabaya Stock Exchange in East Java.
As at December 31, 2014, the IDX had 506 issuers for equity and 110 active brokerage houses. In 2014, IDX recorded a trading volume of 169 billion shares. As at December 31, 2014, the total market capitalization was valued at Rp5,227 trillion
US429.5billion. Trading is divided into three segments, the regular market, negotiated market and the cash market except for rights issues, which can
only be traded on the cash market and the negotiated market for the first session. The regular market is the mechanism for trading stock in standard lots on a continuous auction basis during exchange hours. Auctions on the IDX on regular market and cash market
take place according to the price and time priorities. Price priority refers to the giving of priority to buying orders at a higher price or selling orders at a lower price. If buying or selling orders are placed at the same price, priority is given to the earlier placed buying or
selling order time priority. Trading on the negotiated market is conducted through direct negotiation between i IDX members, ii clients through one IDX member, iii a client and an IDX member, or iv an IDX member and the PT Kliring Penjaminan Efek
Indonesia “KPEI”. KPEI provides clearing and guarantee services of stock exchange transactions settlement. It also improves efficiency and certainty of transactions settlement in IDX.
On November 14, 2012 IDX issued a Decree of BOD No.Kep-00399BEI11-2012 regard with the Change of Trading Regulation No. IIA on Equity – Type Securities Trading that mentioned about the change of IDX’ trading hours, which effected on January 2,
2013 with trading sessions as follow:
Trading Session Market
Day Trading Hours
Pre-opening Regular
Monday - Friday 08.45.00-08.55.00
1
st
Regular Monday-Thursday
09.00.00-12.00.00 Cash
Friday 09.00.00-11.30.00
Negotiation 2
nd
Regular Monday-Thursday
13.30.00-15.49.59 Friday
14.00.00-15.49.59 Negotiation
Monday-Thursday 13.30.00-16.15.00
Friday 14.00.00-16.15.00
Pre-closing Regular
Monday-Friday 15.50.00-16.00.00
Post Trading Regular
Monday-Friday 16.05.00-16.15.00
On November 8, 2013 IDX issued a Decree of BOD No.Kep-00071BEI11-2013 regard with the Change of Trading Regulation No. IIA on Equity – Type Securities Trading that mentioned about the change of lot size, tick price and maximum price movement,
which effected on January 2, 2013. Lot size will change from 500 shares to 100 shares and tick price and maximum share price movement will change as follow:
Previous New
Group Price Tick Price
Maximum Share Price Movement
Group Price Tick Price
Maximum Share Price Movement
≤Rp200 Rp1
Rp10 ≤Rp500
Rp1 Rp20
Rp200 – Rp500 Rp5
Rp50 Rp500 – Rp2,000
Rp10 Rp100
Rp500 – Rp5,000 Rp5
Rp100 Rp2,000 – Rp5,000
Rp25 Rp250
≥Rp5,000 Rp50
Rp500 ≥Rp5,000
Rp25 Rp500
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Table of Content Transactions on the IDX regular market must be settled no later than the third trading day after the transaction. Transactions on the
negotiated market are settled on the basis of the agreement between the selling exchange members and the buying exchange members, on a transaction by transaction basis. Transactions on the IDX cash market must be settled on the day of the transaction and reported
to the IDX. If an exchange member defaults on the settlement of a transaction, the securities can be traded by direct negotiation on cash and carry terms. Each exchange member is required to pay a transaction fee as stipulated by the IDX. Any delay in payment of
the transaction fee is subject to a fine of 1.0 of the outstanding amount for each day of delay. The IDX may impose sanctions on its members for any violation of exchange rules, which may include fines, written warnings, suspension or revocation of licenses.
When conducting share transactions on the IDX, each exchange member is required to pay a transaction cost for transactions on the regular market and cash market of 0.03, guarantee fund 0.01 of the transaction value and VAT and other tax obligation. For the
negotiated market, a transaction cost is 0.03 or depended on exchange policy. A minimum monthly transaction fee of Rp2 million is applied as a contribution for the provision of exchange facilities and continues in effect for members who are suspended or
Exchange Member Approval “SPAB” revoked.
B. Trading on the NYSE and LSE
