JSX asked to refrain from delisting firms<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nhas asked the local stock exchanges to be more tolerant of poorly
\nperforming companies.<\/p>\n
Bapepam chairman Jusuf Anwar said that stock exchange
\noperators should not delist ailing companies even though they no
\nlonger met requirements for listing.<\/p>\n
Financial setbacks resulting from the country's worst ever
\neconomic crisis has left many companies short of the criteria
\nrequired for stock market listing.<\/p>\n
The 80 percent fall in the value of the rupiah against the
\nU.S. dollar has caused foreign debts to increase by more than 300
\npercent when expressed in local currency terms and left many
\ncompanies on the edge of a financial black hole.<\/p>\n
Analysts estimate that more than half of the companies listed
\non the country's stock exchanges have been rendered technically
\nbankrupt by the sharp increase in the rupiah value of their
\nforeign debts.<\/p>\n
\"Exchange operators should be more lenient because poor
\nperformances are mostly due to the crisis and not a failure on
\nthe part of company managements,\" he said in a media briefing
\nheld to mark the 21st anniversary of the Indonesian capital
\nmarket.<\/p>\n
If Bapepam and exchange operators impose the requirements
\nstrictly then around 90 percent of firms currently listed on the
\nlocal market would be delisted, an analyst who asked for
\nanonymity said.<\/p>\n
But according to the Jakarta Stock Exchange (JSX) president,
\nonly 43 companies no longer meet the listing requirements.<\/p>\n
JSX president Cyrill Darwin Noerhadi added that 18 of these
\ncompanies had explained the reasons for their financial problems
\nand how they planned to set their affairs in order.<\/p>\n
He said the exchange operators would soon meet with executives
\nfrom the other 25 companies to hear their accounts of the
\nfinancial difficulties currently besetting them.<\/p>\n
But he hinted these companies would not be delisted from the
\nexchange because their financial problems had mainly been caused
\nby external factors rather than a failure on the part of their
\nrespective managements.<\/p>\n
Jusuf Anwar also said yesterday that Bapepam was currently
\nstudying the possibility of introducing asset revaluation to help
\nthe country's cash-strapped companies get fresh funds to improve
\ntheir capital bases.<\/p>\n
\"I would like to remind you that we are still in the process
\nof studying this possibility\" he said.<\/p>\n
He said Bapepam had also simplified the procedure for listed
\ncompanies to carry out a second share offering so that they would
\nhave no difficulties raising fresh funds through that route.<\/p>\n
\"God willing, under the new procedure listed companies will be
\nable to organize a second share offering in only 42 days,\" he
\nsaid, pointing out that under the old system at least 107 days
\nwere required to accomplish a similar feat.<\/p>\n
\"We are committed to boosting efficiency to improve our stock
\nmarket,\" he said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-asked-to-refrain-from-delisting-firms-1447893297",
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