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)