Overview of Jakarta Stock Exchange Trading Activities in 2006

10 JSX Fact Book 2007

1. Overview of Jakarta Stock Exchange Trading Activities in 2006

The year 2006 proved to be a challenging one for the capital market industry in Indonesia, particularly with the serious concerns at the start of 2006 regarding the negative impact from the domestic fuel prices hike in early October 2005. Nevertheless, with the dedicated hard work of all parties involved, the Jakarta Composite Index JCI in 2006 posted a growth of 55.30 compared to the previous year’s end, rising from 1,162.63 at year-end 2005 to reach 1,805.52 at year-end 2006. The growth of the JCI was attributable to the encouraging increase in share transactions during 2006, which grew by 19.92 from 4.01 million transactions in 2005 to 4.81 million transactions in 206. As a result, the value of share transactions at the Jakarta Stock Exchange JSX also recorded a respectable growth of 9.78, increasing from Rp 406.00 trillion in 2005 to Rp 445.71 trillion in 2006. The growth of these important trade indicators resulted in a more active and liquid market at the JSX during the year under review. This was also reflected in a more active and liquid market at the JSX during the year under review. This was also reflected on the average daily market turnover value that grew by 10.23 from Rp 1.67 trillion in 2005 to reach Rp 1.84 trillion in 2006. The year 2006 also marked another achievement of JSX in the provision of trading facilities, with the acquirement of an ISO 9001-2000 certification for its trading operation. The certification should help improve the confidence and safety of market participants on the services provided by the JSX as a facilitator of stock trading. As of year-end 2006, all active JSX Members Securities Companies JSX Members have taken advantage of our remote trading facility. By using the remote trading facility, JSX Members can input client orders directly from their offices, which makes it possible to expand their market access to clients. Up until year-end 2006, some 88 of all share transactions at the JSX have been facilitated through the system. To minimize the possibility of human errors, the JSX in 2006 issued a new trading regulation to ensure the effectiveness of the remote trading system. This new regulation put a limit on the maximum number of share unit that can be input for a single order entry. This limit currently stand at either 5 million share units or 5 of the total registered number of share units for a particular stock, whichever come first. With regards to new product development, in December 2006 the JSX has completed the necessary regulations concerning the Trading of Exchange Traded Funds ETF. The regulation has been approved by Bapepam-LK, and trading of ETF is expected to commence at the JSX in 2007. In anticipation of future needs, the JSX regards the enhancement of the Jakarta Automated Trading System JATS as one of its priorities. Preparatory steps were taken in 2006, in which the JSX established a business prerequisite guideline for the JATS enhancement project. The enhanced trading system is planned to be implemented in May 2008. According to the guidelines, the development of an enhanced JATS should fulfill the following conditions: • Compatibility with the existing Remote Trading System. • Ensuring that changes due to the enhancement project have minimum impact on other systems that are already integrated with the present JATS, such as data feed, the SMARTS monitoring system, reporting system and data storage • The provision of trading facilities for derivative and debt instruments. · Capable of accommodating the call auction mechanism JSX Fact Book 2007 11

2. Trading Facilities