JSX still undecided on Telkom's delisting<\/p>\n
Rendi A. Witular
\nJakarta<\/p>\n
The Jakarta Stock Exchange (JSX) has yet to decide on whether
\nto delist telecommunications firm PT Telekomunikasi Indonesia
\n(Telkom) from the exchange, following the firm's inability to
\nsubmit an audited 2003 financial report by the required deadline.<\/p>\n
JSX listing director Harry Wiguna told The Jakarta Post on
\nFriday that the bourse was still investigating why Telkom had
\nfailed to submit its report on time.<\/p>\n
Harry said that the JSX would also need time to consult with
\nthe Capital Market Supervisory Agency (Bapepam), before deciding
\non what to do with Telkom.<\/p>\n
\"We will decide Telkom's fate (on the exchange) before June 6.
\nAll of the action taken by JSX should be approved by Bapepam.
\nThis is a serious case because there's a possibility for the JSX
\nto violate its own regulation,\" said Harry.<\/p>\n
Telkom, which also has its shares listed on the New York Stock
\nExchange, failed to submit the reports on time after spending
\nover a year settling its 2002 financial report, which was
\ninitially rejected by the U.S. Securities and Exchange Commission
\nas deficient.<\/p>\n
Telkom settled the problem in February and is currently racing
\nto finish its 2003 report.<\/p>\n
In a press statement on Friday, Telkom said that it was
\nunlikely to meet the June 6 deadline set by the JSX for
\nsubmitting its 2003 financial report, due to the limited time
\navailable to finish its audit.<\/p>\n
\"It is expected that Telkom's consolidated 2003 audited
\nfinancial report will be submitted in the fourth week of June,\"
\nsaid Telkom corporate secretary Adek Julianwar in the statement.<\/p>\n
Telkom shares on the JSX ended higher by Rp 50 at Rp 7,400 on
\nFriday.<\/p>\n
Harry said that the bourse would try to check whether the
\ndelay in Telkom's audit report was caused by an irregularity
\nfound in the audit, or whether it was merely caused by an
\noperational problem.<\/p>\n
\"We need some time to make a decision on the company because
\nTelkom is the largest counter on the bourse. We are still
\ncalculating whether delisting them will bring a positive or
\nnegative impact on overall trading at the JSX,\" he said.<\/p>\n
Telkom has around 20 percent of the market capitalization on
\nthe bourse.<\/p>\n
Harry's explanation is contrary to his statement earlier this
\nmonth. Harry said at the time that \"there will be no grace period
\ngiven to companies failing to meet the deadline in submitting the
\n2003 audited financial report, including Telkom\".<\/p>\n
The JSX issued a second warning letter to 35 firms a couple of
\nweeks ago for failing to submit their audited financial reports,
\nwith a risk of being suspended or delisted from the bourse. The
\nJSX imposed a Rp 10 million (US$1,160) fine against the
\ncompanies.<\/p>\n
The second warning letter came after the companies failed to
\nsubmit their financial reports by the April 30 deadline. The
\nbourse sent its first warning letter to the companies in early
\nApril after they failed to submit their reports by March 31.<\/p>\n
Harry said that of the 35 companies, only 20 had finished
\ntheir reports, including state cement producer PT Semen Gresik,
\ntire maker PT Gajah Tunggal and companies under the Texmaco Group
\nand Sinar Mas Group.<\/p>\n
Based on the JSX regulation, the latest letter gave the
\ncompanies an extension period of 30 days until June 6. The bourse
\nwill then suspend trading of the companies' shares for two weeks
\nif they failed to submit their reports after this date.<\/p>\n
If they again fail to comply within the two-week suspension
\nperiod, the JSX has no other choice but to delist them.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-still-undecided-on-telkoms-delisting-1447899208",
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