Remarks by H.E. Susilo Bambang Yudhoyono President Republic of Indonesia At the New York Stock Exchange, New York, September 15, 2005

 9/20/2005

Ladies and Gentlemen,
 
Good morning :
I am honored and proud to be at the epicenter of the global capital market today. I have always admired the energy, contribution, and more importantly the resilience of this institution.
It is an honor for me today to meet all of you and to be given the chance later on to ring the opening bell at the New York Stock Exchange.
I hope that what I am going to say here will also ring a bell to those of you who are looking for friendly and strong markets abroad.
You must have observed that for the past three consecutive years, the Jakarta Stock Exchange (JSX) consistently ranked among the top ten performers in the world—in terms of percentage growth of the price index, market capitalization and value of share trading. And practically put the JSX back in the investor’s radar.
Throughout the first semester of this year, the market simply went from strength to strength.
Then came the upward spiral of oil prices in August, and the Jakarta Stock Exchange, burdened by a weakening of the Rupiah against the dollar, went the way of all Exchanges elsewhere: down. But after plunging to its lowest point in eight months—below 1000 points—it began to recover. It has never dived since then. 
I can confidently tell you that the Indonesian market remains promising and one of the most attractive baskets you can invest in.
The Indonesian economy is poised for sustainable growth. Last year, it reached its highest rate of growth since the Asian crisis: 5.1 percent. Remarkably this growth, which surpassed all forecasts, was achieved when the global trend was the opposite: a decline in consumption and investment in major countries due to the rise of the Fed Fund rate.
This time, growth was driven not just by consumption but also by exports and investments. The sharp pick-up in investment stemmed from strong domestic demand and low financing cost. Exports of goods and services expanded in line with higher world trade volume. Buoyant domestic demand boosted production.
This was not enough, however, to absorb the 2.4 million Indonesians who joined the labour force last year. We have no choice but to gear our policies for more growth and stability. 
We are enhancing the role of the capital market as an alternative financing source for the real sector. We are developing more reliable and safeguarded investment facilities that also promise attractive profits.
The Capital Market Law gives BAPEPAM – the Indonesian securities regulator – broad regulatory and enforcement powers. The Attorney General’s Office and the National Police support the BAPEPAM in protecting the rights of investors, whatever are their nationalities.
Because ethical behavior in the corporate sector is important, we are adopting, among other standards, the OECD Guidelines on Good Corporate Governance. With support from the IMF and the World Bank, our corporate governance country assessment was completed in September last year. We are matching the best practices of OECD countries.
A while ago, we witnessed the signing of an MoU between the New York Stock Exchange and the Jakarta Stock Exchange. I am sure this marks the beginning of a strong and fruitful relationship.
I congratulate both stock exchanges. I look forward to years and decades in which they, together, serve the economies of our two countries and the interests of investors all over the world.
Before I end, I would like congratulate PT Telkom for their 10th anniversary of its dual listing on the Jakarta and New York Exchange. PT Telkom has done exceptionally well; its share prices has tripled in the last 3 years. I hope to see more of Indonesian companies listed in New York Stock Exchange. 
Finally, let me end by saying that in the past one year, my government has been working hard to start realizing the promises we made to our people. We are cleaning up our state-owned banking sector, prosecuting smuggling and corruption cases, bringing peace to Aceh, strengthening our security apparatus, opening dialogue with the private sector, and pushing for market-oriented legislations.
Ladies and Gentlemen: Indonesia today means business. Thank you very much for your continued support.
Thank you and good day.