Bapepam probes Semen Gresik case<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nis currently investigating suspected insider trading of state-
\nowned cement maker PT Semen Gresik shares on the Jakarta Stock
\nExchange (JSX).<\/p>\n
Bapepam chairman Jusuf Anwar, who replaced I Putu Gde Ary Suta
\non Monday, told journalists yesterday that the agency had set up
\na team to investigate possible fraud in the local bourse.<\/p>\n
"We have set up a team to thoroughly investigate suspected
\ninsider trading of Semen Gresik stocks... Bapepam will not
\ntolerate any manipulative practices in the market," he said.<\/p>\n
But he stopped short of naming any suspects, stressing the
\nimportance of upholding the presumption of innocence.<\/p>\n
"It is just too early for Bapepam to judge who is doing wrong
\nand who is doing right," he said, adding that the team would
\nrequire at least one month for the investigation.<\/p>\n
Jusuf, however, said that the agency already summoned the
\nmanagements of the state-owned securities companies PT Bahana
\nSecurities and PT Danareksa Sekuritas yesterday to explain their
\nrole in the trading of Semen Gresik stock.<\/p>\n
Bapepam has also asked representatives from PT Jardine Fleming
\nNusantara to explain its involvement today, he said.<\/p>\n
Bahana, Danareksa and Jardine Fleming are all inhouse advisers
\nfor the privatization of Semen Gresik.<\/p>\n
Jusuf urged investors and securities houses in the local
\nmarket to abide by existing regulations to improve the market's
\nflagging image.<\/p>\n
"International investors are only interested in putting their
\nfunds into a transparent and fair stock market," he said.<\/p>\n
Former Bapepam chairman I Putu Gde Ary Suta said Monday that
\nhe had suspected illegal transactions of Semen Gresik after its
\nstock prices surged over 50 percent since early May to June 18.<\/p>\n
"This insider trading is the biggest scandal in the history of
\nour capital market," Putu said Monday.<\/p>\n
Semen Gresik stock prices increased 64 percent to Rp 8,900 on
\nJune 18 from Rp 5,450 on May 1.<\/p>\n
Putu said Bapepam then looked into the three affiliated
\nsecurities firms, which turned out to be among the most active
\ntraders of Semen Gresik during the period.<\/p>\n
In addition to the three firms, Putu said Bapepam was also
\ninvestigating three other securities houses which also actively
\ntraded Semen Gresik shares. They are PT Bhakti Investama, PT ING
\nBarings Indonesia and PT Indosuez WICarr Indonesia.<\/p>\n
Stock analysts said the securities houses possibly benefited
\nfrom their inside information that several foreign investors
\nwould purchase part of the government's 65 percent stake in Semen
\nGresik.<\/p>\n
Two international cement producers, Switzerland's Holderbank
\nFinanciere Glarus and Mexico's Cemex CA, submitted bids for part
\nof the government's stake in Semen Gresik on June 17.<\/p>\n
It is suspected that parties benefited from trading stocks in
\nthe publicly listed company based on the information which had
\nnot yet been made public.<\/p>\n
Parties with such insider information could include directors,
\nofficers or key employees and relatives with access to company
\ndecisions.<\/p>\n
Article 104 of the 1995 Capital Market Law states that people
\nconvicted of insider trading could be sentenced to a maximum of
\n10 years in jail and be fined a maximum of Rp 15 billion (US$1.07
\nmillion). (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bapepam-probes-semen-gresik-case-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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