JSX told to provide more evidence on Lippo e-Net<\/p>\n
JAKARTA (JP): The Capital Market Supervisory Agency (Bapepam)
\nhas asked the management of the Jakarta Stock Exchange (JSX) to
\nprovide more evidence on alleged misleading information given by
\npublicly listed PT Lippo e-Net.<\/p>\n
"We want clarification from the JSX about what specific
\ncapital market rules have been breached (by Lippo e-Net)," head
\nof the company financial assessment bureau at Bapepam Freddy
\nSaragih said on Tuesday.<\/p>\n
The JSX reported the insurance company to Bapepam in early
\nApril, saying it had found some inconsistencies in the statements
\nmade by Lippo e-Net. The inconsistencies, according to the JSX,
\ncaused misinterpretation among the public about the company.<\/p>\n
The JSX reported the case to Bapepam as many analysts
\nexpressed concern over possible share price manipulation by the
\ncompany.<\/p>\n
Lippo e-Net share prices doubled within a week in mid-January
\nafter the company made a high profile public announcement that it
\nhad transformed itself from an insurance firm to an Internet
\ncompany and planned an immediate allocation of Rp 1 trillion for
\nthe business.<\/p>\n
The stated fund allocation has not been realized to date.<\/p>\n
The JSX, in its report, said Lippo e-Net was not ready to
\nenter the e-commerce business.<\/p>\n
Lippo e-Net had purposely directed "certain" interpretations
\nabout the company to form a certain public perception, the report
\nadded.<\/p>\n
And finally, the report said, Lippo e-Net purposely took
\nadvantage of the market euphoria about the Internet industry.<\/p>\n
The chief commissioner of Lippo e-Net Billy Sindoro has denied
\nthe allegation, saying that the plan to enter the Internet market
\nwas one of the company's long-term business interests.<\/p>\n
"We never tried to mislead the market," he told securities
\nanalysts in a meeting recently.<\/p>\n
Freddy said the JSX had to explain further from what point of
\nview Lippo e-Net was not ready for the e-commerce business.<\/p>\n
It was also not clear who had the problem with the
\ninterpretation, Freddy added.<\/p>\n
"That might be the interpretation of the JSX. How about the
\npublic's interpretation?" Freddy queried.<\/p>\n
"About the market euphoria, what kind of euphoria does the JSX
\nmean?" he asked again.<\/p>\n
Bapepam's chairman, Herwidayatmo, said the agency did not only
\nask for more evidence from JSX management, but also from Lippo e-
\nNet in carrying out its investigation.<\/p>\n
Freddy earlier said Lippo e-Net was required to provide
\nevidence to Bapepam that the company was serious in entering the
\nInternet sector.<\/p>\n
But Freddy avoided discussing whether Lippo e-Net had to
\npresent evidence that the company's Rp 1 trillion commitment to
\nthe Internet business, as widely announced to the public,
\nexisted.<\/p>\n
He said, however, that Bapepam had received evidence in the
\nform of Lippo e-Net's minutes of meetings which showed that some
\nyears ago the company was interested in the Internet business.<\/p>\n
Freddy said Bapepam would have a final decision on Lippo e-Net
\nnext Monday.(udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/jsx-told-to-provide-more-evidence-on-lippo-e-net-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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