SSE to allow listing of start-up mining firms

The Surabaya Stock Exchange (SSE) is currently amending regulations that will give opportunities for mining companies in their exploration stage to offer shares on the exchange to raise fresh funds to finance their operation.

SSE director Anton Natakusuma said that the exchange was ready to accommodate mining firms, it's only waiting the green light from the Capital Market Supervisory Agency (Bapepam).

"There are a number of regulations that need revision. But they are not many," Anton said. He added that when the revision was completed, Bapepam would just approve it. "Soon, we will start running."

Anton also expressed his confidence that mining firms in their exploration stage would be receptive with SSE's offer to raise public funds through the exchange. "For that purpose, we will socialize (the revised regulations)."

SSE has been working closely with various business and professional associations in its efforts to open up its market for start-up mining companies.

A mining market analyst said that Bapepam had been overly cautious about allowing start-up mining companies to raise funds in the domestic stock markets following the emergence of the Busang gold mining fiasco.

"They are afraid that the Busang case could occur again because even a modern capital market in Canada which has long been familiar with mining operation could still be fooled, moreover the local market which has never dealt with start-up mining firms," he said. (*)