JSX 'guilty of unfair business practices'<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Business Competition Supervisory Commission (KPPU) ruled on
\nFriday that bourse management firm the Jakarta Stock Exchange
\n(JSX) was guilty of having constituted a potential monopoly in
\nits offering of the stock market's electronic reporting system
\nproject two years ago.<\/p>\n
No administrative sanctions or penalties were imposed on JSX,
\nbut the company was ordered to terminate its contract for the
\nproject with information technology firm PT Limas Stokhomindo,
\nwithin 30 days after accepting the commission's ruling.<\/p>\n
KPPU's somewhat \"light sentence\" for the case came as JSX had
\nalready canceled the contract in February, following a similar
\ndemand -- on similar grounds -- from the Capital Market
\nSupervisory Agency (Bapepam).<\/p>\n
The commission's ruling was handed down after its panel for
\nthe case -- Pande Raja Silalahi, Sutrisno Iwantono and Bambang
\nPurnomo Adiwiyoto -- spent four months, since February, examining
\n125 documents and questioning five witnesses, as well as hearing
\nthe testimonies from both JSX and Limas.<\/p>\n
KPPU official Pande Radja Silalahi said that JSX's decision to
\ndirectly appoint Limas without an open bidding process to
\nimplement its electronic reporting system had violated Law No.
\n5\/1999 on the prohibition of monopolies and unfair business
\ncompetition.<\/p>\n
\"JSX was found guilty of breaching Article 19 of the law, for
\nthe discriminatory treatment in favor of certain business units,\"
\nhe said.<\/p>\n
Pande added that the commission had decided to investigate the
\ncase after acknowledging reports in the media about possible
\nirregularities in the implementation of the electronic reporting
\nand monitoring system.<\/p>\n
Many of the bourse's listed companies had complained to JSX in
\nAugust last year when Limas started asking for fees for the
\nreporting service, even though the service was then only being
\ntested under a trial period.<\/p>\n
The contract for the project was signed between JSX and Limas
\nin June 2003. There are currently 331 companies listed at the
\nbourse and 72 securities houses that are members of the JSX.<\/p>\n
Upon learning the case, Bapepam then ordered JSX to cancel the
\nagreement altogether, which was followed shortly by KPPU's
\ninvestigation.<\/p>\n
Nevertheless, all parties agreed that an electronic reporting
\nand monitoring system would be useful in improving the efficiency
\nof the bourse' operations.<\/p>\n
Prior to such a system, communication between JSX and its
\nlisted companies was done manually, in which the companies would
\nsend their public financial reports by mail and facsimile, with
\nJSX then scanning the documents into a proper format before
\nuploading them on to their website at http:\/\/www.jsx.co.id .<\/p>\n
Commenting on the ruling, JSX director for trading and
\nmembership MS Sembiring said that the company would accept the
\nKPPU's decision, adding that JSX would, in the future, hold an
\nopen bidding for all of its projects.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-guilty-of-unfair-business-practices-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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