Lippo e-Net 'gives misleading info'<\/p>\n
JAKARTA (JP): Equity analysts accused listed life insurer PT
\nLippo e-Net on Wednesday of presenting misleading information to
\nfool the public into believing it had transformed itself into an
\nInternet company.<\/p>\n
A number of equity analysts attending the company's public
\nexpose at the Jakarta Stock Exchange office on Wednesday said
\nthey were stunned to find out that thus far Lippo e-Net was a
\nmere insurance company with practically no involvement in
\nInternet investment or e-business.<\/p>\n
\"Lippo e-Net is spreading misleading information obviously
\nonly to stir their own share prices up,\" said Lin Che Wei of PT
\nSG Securities Indonesia.<\/p>\n
\"Why do they already claim to be an Internet company, while
\nsaying they have not yet completed their business plan for the
\nInternet business?\" Lin queried.<\/p>\n
Lin said Lippo e-Net's Internet business story was only a
\nsensation to capitalize on investors' craze for the stock of high
\ntechnology and Internet companies.<\/p>\n
Lippo e-Net earlier announced it had changed its name to PT
\nAsuransi Lippo e-Net from PT Asuransi Lippo Life as it had turned
\nitself into an Internet and e-commerce company.<\/p>\n
\"Lippo e-Net since today has officially transformed itself
\ninto an Indonesian cyber business and e-commerce company worth Rp
\n2 trillion (US$266 million),\" the company announced in late
\nJanuary.<\/p>\n
Johanes Soetikno from the Indonesian Securities Investors
\nSociety (MISI) regretted what he called Lippo e-Net's
\nirresponsible move to create such an image, while in fact it had
\nnot yet moved from insurance to Internet business.<\/p>\n
\"It is against the business code of ethics and the law that
\nthe company tried to convince the public that it was an Internet
\ncompany, while actually it had not yet started any Internet
\ninvestment or business,\" he said.<\/p>\n
Law No. 8\/1995 on Capital Market clearly prohibits any party
\nfrom intentionally presenting untrue or misleading information to
\nthe public in a bid to artificially influence share prices on the
\nstock market.<\/p>\n
The law threatens violators with a maximum 10 years of
\nimprisonment and a maximum Rp 15 billion fine.<\/p>\n
Lippo e-Net president commissioner Billy Sindoro denied that
\nthe company had violated the law.<\/p>\n
\"Internet business is of the company's interest and we would
\ninvest in that to increase the value of stock held by investors,\"
\nhe said.<\/p>\n
He said Lippo e-Net had about Rp 2 trillion in assets that can
\nbe gradually used for Internet investment.<\/p>\n
The Rp 2 trillion assets include Rp 170 billion in cash, Rp
\n1.2 trillion in marketable securities and the remaining in equity
\nparticipation in the non-listed affiliates.<\/p>\n
\"We are now still an insurance company with investments in the
\nInternet business,\" he said.<\/p>\n
He said the company would hold an extraordinary meeting in
\nApril to gain shareholders approval for the company's new name,
\nthe company's new statute, and its shift from insurance to
\nInternet business.<\/p>\n
Lippo e-Net, listed on the Jakarta Stock Exchange, currently
\nmanages less than 1 percent of the insurance premium funds placed
\nby clients in the company as it has already transferred more than
\n99 percent of the funds to its affiliate, PT AIG Lippo, which is
\n30 percent owned by Lippo e-Net. (udi)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/lippo-e-net-gives-misleading-info-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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