145 companies placed on development board: JSX
145 companies placed on development board: JSX
JAKARTA (JP): The Jakarta Stock Exchange (JSX) placed on
Monday 145 listed companies, including major player Astra
International, on the second-class development board after they
failed to meet tougher new conditions required to be on the main
board.
"These companies failed to meet one or more of the conditions
to be qualified for the main board," JSX president Achmad Daniri
told a news briefing.
JSX began applying the two-board trading system on Monday,
dividing listed companies onto the main board and the development
board, depending on their asset size and overall business
performance.
Among the 145 companies put on the development board are Bank
Central Asia, Multipolar Corporation, Indah Kiat Pulp Paper,
Indofood Sukses Makmur, Bakrie Finance Corp., Procter & Gamble
Indonesia, Tri Polyta Indonesia, United Tractors, Bukaka Teknik
Utama, BAT Indonesia, Bank International Indonesia and Bank
Negara Indonesia.
JSX currently has a total of 285 listed companies and
announced that with the two-board system, all stocks would be
traded on the main board unless they failed to meet a number of
conditions, including:
* If the companies suffered losses for the past three
consecutive years, or posted a cumulative loss of up to 50
percent of paid-up capital in 1999.
* If they failed to paid dividends for the past three
consecutive years.
* Having paid-up capital of less than Rp 3 billion.
* Having shareholders of less than 100 individuals and/or
institutions over the past three consecutive months.
* If the company's shares had been traded for the past six
consecutive months.
* Being declared bankrupt by the Commercial Court.
* Having a disclaimer opinion from an independent auditor.
Daniri added that other factors to be considered in
downgrading the stocks from the main board to the development
board was the ability to implement good corporate governance.
Citing an example of good corporate governance practices,
Daniri said that companies should not give concessional loans to
their own affiliates.
Companies operating under good corporate governance did not
give bank guarantees to their affiliates without commercial
consideration and proper monetary compensation for the risk
involved, according to Daniri.
He added that in a case where a company changed its core
business, it should first clearly show that the new core business
to be adopted had made a meaningful contribution to the company's
income streams.
In addition, Daniri added, all listed companies were expected
to have at least one independent director and commissioner as the
representative of the minority shareholders by end of 2001.
Meanwhile, head of company surveillance division at JSX Yose
Rizal said 19 listed companies had not published their audited
financial reports for 1999 and faced the risk of being suspended
from trading.
These companies are Inti Indorayon Utama, Bakrieland
Development, Panca Overseas Finance, Concord Benefit Enterprises,
Super Mitory Utama, Polysindo Eka Perkasa, Semen Cibinong,
Dharmala Sakti Sejahtera, Bhuwanatala Indah Permai, Alter Abadi,
Bumi Modern, Mas Murni Indonesia, Waniaindah Busana, Bintuni
Minaraya, Texmaco Perkasa Engineering, Kawasan Industri Jababeka,
Daya Guna Samudera, Texmaco Jaya and Wahana Jaya Perkasa.
Yose said JSX would suspend the trading of their shares if
they failed to publish their 1999 audited finanial statements by
July 10.
He added that since some of these companies were currently on
the main board, they faced the risk of being downgraded to the
development board if the audited financial reports which they
might finally submit showed a disclaimer auditor's opinion.
"Getting a disclaimer opinion just once will cause a company
to be downgraded to the development board, while getting a no-
opinion verdict from auditors two consecutive times will lead to
the suspension of a company's shares from trading," Yose said
quoting the new listing regulations of JSX. (udi)