ABSTRACT
During the period after World War II, Indonesia's bond market alternated between periods of very low activity or a complete suspension of bond trading. Indonesia currently has three stock exchanges, and bonds can be listed and traded on all three exchanges. These are the Jakarta Stock Exchange, the Surabaya Stock Exchange, and the Parallel Bourse, the last being an over-the-counter market with no centralized trading floor. The last two exchanges were established only as recently as 1989 following the 1988 financial reforms. The main participants in Indonesia's bond market are the issuers, underwriters, broker-dealers, buyers, and other groups, such as the custodian banks and clearing agencies. The number of brokers on the Jakarta Stock Exchange, as measured by the number of member firms on the stock exchange, has increased over the years. Badan Pelaksana Pasar Modal (BAPEPAM) is the main regulator and performs a role similar to that of the United States Securities and Exchange Commission.
