Two securities companies suspended for low capital<\/p>\n
JAKARTA (JP): The Jakarta Stock Exchange (JSX) has temporarily
\nsuspended the trading activities of two securities firms because
\nof their poor capital reserves.<\/p>\n
The stock market operator said in a statement yesterday that
\nthe net adjusted working capital of PT Transpacific Securindo and
\nPT Monas Buana Securities was lower than the minimum requirement
\nof Rp 200 million.<\/p>\n
\"The capital base of the two companies is negative,\" the
\nstatement said.<\/p>\n
A JSX public relations official said yesterday that the
\nmanagement of the two securities firms would have to increase
\ntheir capital base if they wanted to resume trading.<\/p>\n
\"The management of the two companies will have to increase
\ntheir working capital before they are allowed to trade on the
\nlocal exchange again,\" he said.<\/p>\n
In a later development, the JSX management said it was
\nconsidering delisiting 25 poorly performing companies from the
\nexchange.<\/p>\n
The stock market operator said the net losses of the 25
\ncompanies had swelled to more than 50 percent of their paid-up
\ncapital and their total equities were less than the minimum
\nrequirement of Rp 3 billion.<\/p>\n
An exchange official said yesterday that some of the listed
\ncompanies had explained the reasons for their poor earnings and
\nlow capital base to the JSX management.<\/p>\n
A source said the companies could be delisted from the
\nexchange if their executives took no action to improve financial
\nperformance.<\/p>\n
The 25 companies which are in danger of being delisted from
\nthe local exchange are PT Alumindo Perkasa, PT Aneka Kimia Raya,
\nPT Bank Umum Nasional, PT Bukaka Teknik Utama, PT Central
\nProteina Prima, PT Dharmala Agrifood, PT Surya Hidup Satwa, PT
\nFajar Surya Wisesa, PT Anwar Sierad, PT Argo Pantes, PT Concord
\nBenefit Enterprises, PT Ometraco Corporation, PT Inter Delta, PT
\nMiwon Indonesia, PT Modern Bank, PT Perdana Inti Investama, PT
\nSierad Produce, PT Steady Safe, PT Aster Dharmala, PT Darya-Varia
\nLabotaria, PT Dharmindo Adiduta, PT Intinusa Selareksa, PT Putra
\nSurya, Multidana, PT Putra Surya Perkasa, and PT Trypolita
\nIndonesia.<\/p>\n
The monetary crisis has caused the rupiah to slump in value
\nagainst the U.S. dollar by almost 80 percent since last July and
\nhas been a big blow to most companies in Indonesia. The rupiah is
\ncurrently trading at around 13,000 to the dollar compared to its
\npre-crisis level of 2,450.<\/p>\n
The crisis has forced most companies listed on the local
\nexchange into technically bankruptcy because their total debt
\nobligations are now much higher than their equities. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/two-securities-companies-suspended-for-low-capital-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}