The Jakarta Stock Exchange (JSX), known as Bursa Efek Jakarta (BEJ) in Indonesian, was a stock exchange that existed in Jakarta in various forms between 1912 and 2007. In 2007, it merged with the Surabaya Stock Exchange to create a single entity, the Indonesian Stock Exchange. This exchange is based in Jakarta and plays a significant role in the economy of Indonesia. It is connected with exchanges in other members of the Association of Southeast Asian Nations (ASEAN).
The Jakarta Stock Exchange was organized in its final form in 1992 after several reorganizations and periods of inactivity. Two key indexes on the exchange were the JSX Composite Index and the Jakarta Islamic Index (JIL), and both of these continue to be listed and traded on the Indonesian Stock Exchange. The JIL is based on the top-performing companies doing business in accordance with Islamic standards, avoiding economic activities forbidden under the Qu'ran such as gambling or profiting from interest charges. The Indonesian Stock Exchange also lists the FTSE Index, a financial index used in all ASEAN markets.
This stock exchange was used to trade a variety of security products using an electronic trading system to facilitate ease and accuracy of trading on the Jakarta Stock Exchange. Traders on the exchange were required to receive licenses to engage in trading activity and many people got their start on the exchange under the tutelage of a brokerage house, with their employers providing sponsorship as they trained and got their footing in stock trading. Traders on the Jakarta Stock exchange met for two daily trading sessions, one in the morning and one in the afternoon.
Like other major stock exchanges, the Jakarta Stock Exchange was a useful indicator for Indonesian economic performance. People in Indonesia could track performance of stock indexes to get information about general market trends. This information could be applied to everything from policymaking to decisions about investments and financial planning. Analysts outside Indonesia including economists and political analysts followed the Jakarta Stock Exchange to collect data about the nation's economic well being and political stability.
After the 2007 merger to create the Indonesian Stock Exchange, the Jakarta Stock Exchange was considered defunct. Investors, economists, and analysts track performance on the Indonesian Stock Exchange just as they followed activities in the separate exchanges before the merger. Indonesia's membership in ASEAN makes performance on its markets a topic of concern and interest, as it can influence activities in other Asian markets due to increasing financial and political connections between ASEAN member nations.
