It has been recognized that the onset of financial crisis in 1997 and its adverse impact on the indonesian economy has caused the slow development of the Indonesian capital market to date. The performance of leading market indicators such as the jakarta Stock Exchange Indices, trading volume and overall market capitalisation still remain below pre-crisis level. These point to the need for radical and appropriate measures to ensure that our capital market still has its capacity to continue its part in supporting national growth needs and to meet the challenges of relevant externalities such as regional competition and globalisation