Jakarta, CNBC Indonesia – Foreign stock brokerPT Citigroup Sekuritas Indonesia (CSI), part of Citibank Indonesia, officially discontinuedbusiness operations in Indonesia. Citigroup Security also decided to go out of business consumer bankingin dozens of other countries, such as South Korea.
Known, pCitigroup Sekuritas business discontinuation occurred in line with the process of selling the business consumer banking Citi in Indonesia. As for The Indonesia Stock Exchange (IDX) has officially revoked the Citigroup Sekuritas Exchange Member Approval Letter (SPAB).
This is stated in an announcement numbered Peng-00045/BEI.ANG/11-2021 on November 10, 2021, which was delivered by the Director of Transaction Supervision and Compliance of the IDX, Kristian Manullang and the Director of Trading and IDX Member, Laksono Widodo.
“It is hereby announced that as of November 10, 2021, the Board of Directors of the Indonesia Stock Exchange (IDX) has revoked the Exchange Member Approval Letter (SPAB) of PT Citigroup Sekuritas Indonesia,” reads the announcement.quoted on Saturday, (11/13/2021).
BesidesCitigroupSecurities, there are four other foreign brokers who since 2019 have decided to reduce their business operations in Indonesia.The four brokers are PT Morgan Stanley Sekuritas Indonesia (from the United States/USA), PT Merrill Lynch Sekuritas IndonesiafromUSA, PT Deutsche Sekuritas Indonesia from Germany,and PT Nomura Sekuritas IndonesiafromJapan.
1. Morgan Stanley Securities Indonesia
Morgan Stanleyresmistop the activities of securities brokerage (PPE) orbrokerage(stock broker) in Indonesia. In a statement provided by Morgan Stanley management, this company will continue to facilitate securities trading in Indonesia for its clientsthrough cooperationwith local brokers.
“We will continue to provide our global clients with access to the Indonesian equity market through our workequal to qualified local brokerage partners, “the statement wrote.
AThas also revoked SPABowned by Morgan Stanley or formerly known as PT Morgan Stanley Asia Indonesia as of June 30, 2021.SPABthatnumbered SPAB-250/JATS/BELANG/04-2012, dated 23 April 2012 and registration number 253.
ATexplainThe departure of foreign brokers from Indonesia, such as what was done by Morgan Stanley, was caused by the decreasing weighting of shares in Asean countries, including Indonesia in the weighting of the MSCI Index.
Director of Trading and Regulation of IDX Members, Laksono Widodo, said that the weighting of shares in this region in the MSCI began to be pushed by Chinese stocks, which are also still categorized as developing countries in the index.
“Why did Morgan Stanley withdraw, it would be best to ask them directly. But maybe with the decreasing weightings of Asean (including Indonesia) at MSCI (the urgency of China, which is still considered an emerging country),” said Laksono.
2. Merrill Lynch Securities Indonesia(MLSI)
MLSIofficially closed brokerage business in Indonesia in 2019.According to CNBC Indonesia records, as of July 11, 2019, companies holding securities brokerage licenses (brokerage) is no longer conducting share buying and selling activities.
MLSI is a company affiliated with world-class financial company BofA Securities or previously known as Bank of America Merrill Lynch. Previously, Merrill Lynch was one of the major investment banks on the Wall Street exchange, United States (US).
However, the crisis that occurred in the US in 2008 made Merrill Lynch waver and had to accept the fact that it was acquired by Bank of America (BoA) on January 1, 2009.Afterthat,in 2011 Bank of America Merrill Lynch integrated its corporate andinvestment banking. Lalu pada February 2019, Bank of America Merrill Lynchannouncerebrandingdivision investment bankingthey became BofA Securities.
In the financial statements of the broker with the code ML, it is stated that since January 1, 2019, the parent company has been acquired by Bank of America Corporation. MLSI continues its business as a subsidiary of Bank of America.
MLSI stands upin Indonesiain 1994. MLSIobtained approval as a securities underwriter and securities trading broker from the Capital Market and Financial Institution Supervisory Agency (Bapepam-LK), now the Financial Services Authority (OJK), on January 8, 1996.
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