Mar'ie says laws don't restrict share ownership<\/p>\n
JAKARTA (JP): Minister of Finance Mar'ie Muhammad reiterated
\nyesterday that none of the stipulations in the Capital Market Law
\nNo.8\/1995 and its implementation rulings restricted share
\nownership in companies listed on domestic stock exchanges.<\/p>\n
\"The only restriction stipulated in the law is the one which
\nlimits foreign ownership to a maximum of 49 percent of the listed
\nshares,\" Mar'ie said last night.<\/p>\n
He said he hoped this would put to rest the controversy and
\nanswer the many questions raised in recent days about share
\nownership restrictions on the stock markets.<\/p>\n
The controversy was set off by Minister of Cooperatives
\nSubiakto Tjakrawerdaya's after a meeting with President Soeharto
\non Tuesday.<\/p>\n
Subiakto alluded after the meeting that President Soeharto did
\nnot want to see individuals or business groups own more than 15
\npercent of listed companies.<\/p>\n
\"The objective is to prevent monopolies and to have corporate
\nshares equitably owned by the investing public,\" Subiakto said
\nwhen summing up his talks with the President.<\/p>\n
Most analysts immediately criticized his remarks as misleading
\nbecause share ownership and stock transactions on domestic stock
\nexchanges are governed by the Capital Market Law.<\/p>\n
Mar'ie said the Capital Market Law required transparency and
\nfull disclosures of share acquisition and ownership.<\/p>\n
\"The law, for example, obliges an investor who acquires up to
\n5 percent of a listed company to report his transactions to the
\nCapital Market Supervisory Agency (Bapepam) within 10 days of the
\ndeal,\" the finance minister said.<\/p>\n
He also cited a provision of the law which required an
\ninvestor who buys up to 20 percent of a listed company with a
\nview to controlling to make an open tender offer.<\/p>\n
Mar'ie said a Bapepam ruling also allowed a company making an
\ninitial public offer to issue up to 10 percent of its shares to
\nits employees in order to broaden the small investor base.<\/p>\n
The issue of controlling ownership of a listed company
\nsurfaced last month during the huge Astra International
\nacquisition by Putra Sampoerna, the chairman of the Sampoerna
\ncigarette group.<\/p>\n
Three foundations chaired by Soeharto later moved in to the
\nmarket to buy more than 10 percent of Astra in a bid to dilute
\nthe Sampoerna family's controlling share ownership. (vin)<\/p>",
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